Allegion PLC (ALLE)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,318,300 | 941,800 | 759,100 | 829,400 | 757,400 |
| Debt-to-capital ratio | 0.55 | 0.69 | 0.65 | 0.63 | 0.65 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,602,400K ÷ ($1,602,400K + $1,318,300K)
= 0.55
The debt-to-capital ratio of Allegion plc has fluctuated over the past five years, ranging from 0.60 to 0.69. This ratio indicates the proportion of the company's capital structure that is financed by debt. A decreasing trend from 2022 to 2023 suggests that Allegion plc may be reducing its reliance on debt to fund its operations and investments. However, the ratio remains above 0.5, indicating that a significant portion of the company's capital structure is still financed by debt. Investors and creditors may view a lower ratio favorably as it signifies lower financial risk and potentially improved financial stability. It is important to continue monitoring this ratio in the future to assess Allegion plc's ongoing capital structure management.