Advanced Energy Industries Inc (AEIS)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 895,679 | 899,848 | 343,516 | 348,389 | 353,262 | 358,132 | 363,001 | 367,868 | 372,733 | 377,597 | 296,045 | 300,297 | 304,546 | 308,794 | 313,040 | 317,285 | 321,527 | 325,769 | — | — |
| Total stockholders’ equity | US$ in thousands | 1,144,180 | 1,100,870 | 1,125,280 | 1,095,910 | 1,066,270 | 989,287 | 924,228 | 900,688 | 870,851 | 841,120 | 875,941 | 845,641 | 814,739 | 768,152 | 717,813 | 685,397 | 676,714 | 659,627 | 655,518 | 621,624 |
| Debt-to-capital ratio | 0.44 | 0.45 | 0.23 | 0.24 | 0.25 | 0.27 | 0.28 | 0.29 | 0.30 | 0.31 | 0.25 | 0.26 | 0.27 | 0.29 | 0.30 | 0.32 | 0.32 | 0.33 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $895,679K ÷ ($895,679K + $1,144,180K)
= 0.44
The debt-to-capital ratio of Advanced Energy Industries Inc. has shown some fluctuations over the past eight quarters. The ratio ranged from 0.44 to 0.24 in the most recent quarter, which indicates that debt accounts for 44% to 24% of the company's total capital structure during this period.
The trend in the debt-to-capital ratio has generally been decreasing over the past two years, starting at 0.30 in Q1 2022 and gradually declining to 0.24 in Q4 2023. This suggests that the company has been making progress in reducing its debt relative to its total capitalization.
A lower debt-to-capital ratio indicates that the company is relying less on debt financing and has a stronger equity position. It may imply a lower financial risk and better financial health, as the company has a higher proportion of capital that is not subject to debt-related obligations.
However, it's important to note that debt-to-capital ratio should be analyzed in conjunction with other financial ratios and factors to get a comprehensive view of the company's financial position and leverage.
Peer comparison
Dec 31, 2023