Allegion PLC (ALLE)

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	1,602,400	2,005,100	2,046,700	2,109,300	2,081,900	2,214,500	2,018,100	1,426,800	1,429,500	1,192,500	1,430,300	1,429,800	1,429,400	1,428,900	1,428,500	1,428,000	1,427,600	1,427,000	1,393,100	1,401,300
Total stockholders’ equity	US$ in thousands	1,318,300	1,232,100	1,138,600	1,041,700	941,800	791,300	776,900	741,600	759,100	864,200	784,000	727,700	829,400	824,300	677,500	611,300	757,400	685,000	660,500	633,700
Debt-to-capital ratio		0.55	0.62	0.64	0.67	0.69	0.74	0.72	0.66	0.65	0.58	0.65	0.66	0.63	0.63	0.68	0.70	0.65	0.68	0.68	0.69

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 been fluctuating over the past eight quarters, ranging from 0.60 to 0.74. The ratio measures the proportion of the company's capital that is funded by debt, with values closer to 1 indicating higher reliance on debt financing.

From Q4 2022 to Q2 2023, there was a gradual increase in the debt-to-capital ratio, peaking at 0.74 in Q3 2022 before slightly decreasing in the following quarters. This upward trend suggests an increasing use of debt relative to capital during that period.

However, in the most recent quarters, there has been a slight decline in the ratio, indicating a potential shift towards a lower reliance on debt financing compared to earlier periods. It is important to monitor this ratio in future periods to assess the company's capital structure and financial risk management strategies.