Autoliv Inc (ALV)
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 | 1,324,000 | 1,054,000 | 1,662,000 | 2,110,000 | 1,726,100 |
| Total assets | US$ in thousands | 8,332,000 | 7,717,000 | 7,537,000 | 8,157,000 | 6,771,200 |
| Debt-to-assets ratio | 0.16 | 0.14 | 0.22 | 0.26 | 0.25 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,324,000K ÷ $8,332,000K
= 0.16
The debt-to-assets ratio of Autoliv Inc. has shown a decreasing trend over the past five years, indicating a lower reliance on debt financing relative to total assets. In 2023, the ratio stands at 0.22, down from 0.23 in 2022, 0.27 in 2021, 0.30 in 2020, and 0.31 in 2019. This decline suggests that the company has been effectively managing its debt levels in relation to its asset base, potentially reducing financial risk and improving overall financial stability. It signifies that Autoliv Inc. has been able to finance a larger portion of its assets using equity rather than debt, which could result in lower interest expenses and improved solvency.
Peer comparison
Dec 31, 2023