Autoliv Inc (ALV)

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	1,324,000	1,054,000	1,662,000	2,110,000	1,726,100
Total stockholders’ equity	US$ in thousands	2,557,000	2,613,000	2,633,000	2,409,000	2,109,200
Debt-to-capital ratio		0.34	0.29	0.39	0.47	0.45

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,324,000K ÷ ($1,324,000K + $2,557,000K)
= 0.34

The debt-to-capital ratio of Autoliv Inc. has shown fluctuations over the past five years, ranging from 0.40 to 0.50. The ratio measures the proportion of the company's capital that is financed by debt, with a higher ratio indicating a higher level of debt relative to total capital.

In 2023, the debt-to-capital ratio increased slightly to 0.42 from 0.40 in 2022. This suggests that the company's reliance on debt financing compared to its total capital increased marginally during the most recent year.

Compared to the ratios in 2021, where the ratio was at 0.43, and in 2020 and 2019, where the ratio was consistently higher at 0.50, it appears that Autoliv Inc. has been managing its debt levels more efficiently in recent years.

The decreasing trend in the debt-to-capital ratio from 2020 to 2023 indicates that the company may have been focusing on reducing its debt levels or increasing its equity capital during this period. This could be a positive sign as lower debt ratios generally indicate lower financial risk and better financial health for the company.

Overall, although the debt-to-capital ratio of Autoliv Inc. has fluctuated over the past five years, the recent decrease in the ratio suggests a potential improvement in the company's debt management and financial stability.