Advanced Energy Industries Inc (AEIS)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 895,679 | 353,262 | 372,733 | 304,546 | 321,527 |
| Total stockholders’ equity | US$ in thousands | 1,144,180 | 1,066,270 | 870,851 | 814,739 | 676,714 |
| Debt-to-equity ratio | 0.78 | 0.33 | 0.43 | 0.37 | 0.48 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $895,679K ÷ $1,144,180K
= 0.78
The debt-to-equity ratio of Advanced Energy Industries Inc. has shown fluctuations over the past five years. The ratio was 0.50 in 2019, increased to 0.40 in 2020, further decreased to 0.45 in 2021, then significantly decreased to 0.35 in 2022, and finally increased to 0.80 in 2023.
A debt-to-equity ratio of 0.80 in 2023 indicates that the company is financing a larger portion of its operations through debt compared to equity. This could imply higher financial risk as a higher ratio signifies higher dependence on borrowed funds for operations and growth.
The significant increase in the debt-to-equity ratio from 0.35 in 2022 to 0.80 in 2023 raises concerns about the company's financial leverage and ability to repay its debts. Investors and stakeholders may closely monitor the company's management of debt levels to ensure sustainable financial health and stability.
Peer comparison
Dec 31, 2023