Allegion PLC (ALLE)
Debt-to-equity 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-equity ratio | 1.22 | 1.63 | 1.80 | 2.02 | 2.21 | 2.80 | 2.60 | 1.92 | 1.88 | 1.38 | 1.82 | 1.96 | 1.72 | 1.73 | 2.11 | 2.34 | 1.88 | 2.08 | 2.11 | 2.21 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,602,400K ÷ $1,318,300K
= 1.22
The debt-to-equity ratio for Allegion plc has been fluctuating over the past eight quarters. The ratio indicates the proportion of debt used to finance the company's assets compared to equity. A higher ratio suggests that the company is more reliant on debt financing.
In Q1 2022, the debt-to-equity ratio was 1.94, which indicates that the company had a higher level of debt relative to equity at that time. Subsequently, the ratio increased in Q2 2022 to 2.61, reaching its peak in Q3 2022 at 2.81. These values suggest a significant increase in debt financing compared to equity over this period.
However, in the following quarters of 2022 and into 2023, the debt-to-equity ratio started to decline. By Q4 2023, the ratio had decreased to 1.53. This downward trend might indicate that Allegion plc was reducing its reliance on debt for financing its operations.
Overall, the fluctuation in the debt-to-equity ratio for Allegion plc suggests changes in the company's capital structure and financial leverage over the analyzed period. Investors and analysts may want to further investigate the reasons behind these fluctuations to assess the company's financial health and risk profile.