Allegion PLC (ALLE)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,602,400 | 2,081,900 | 1,429,500 | 1,429,400 | 1,427,600 |
| Total assets | US$ in thousands | 4,311,500 | 3,991,200 | 3,051,000 | 3,069,400 | 2,967,200 |
| Debt-to-assets ratio | 0.37 | 0.52 | 0.47 | 0.47 | 0.48 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,602,400K ÷ $4,311,500K
= 0.37
The debt-to-assets ratio of Allegion plc has shown some fluctuations over the past five years. In 2023, the ratio decreased to 0.47 from 0.52 in 2022, indicating that the company had a lower proportion of debt relative to its total assets. This could suggest an improvement in the company's financial leverage and ability to meet its financial obligations.
Comparing the current ratio to previous years, we can see that it is consistent with the ratios in 2021 and 2020, which were also at 0.47. This stability over the last three years could indicate that Allegion plc has been maintaining a relatively conservative level of debt in relation to its assets.
Furthermore, the debt-to-assets ratio in 2019 was slightly higher at 0.48, suggesting that the company may have reduced its debt levels since then. Overall, the trend in the debt-to-assets ratio for Allegion plc indicates a prudent approach to managing its debt and assets, showing a potential strengthening of the company's financial position.