Autoliv Inc (ALV)
Debt-to-equity 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-equity ratio | 0.52 | 0.40 | 0.63 | 0.88 | 0.82 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,324,000K ÷ $2,557,000K
= 0.52
The debt-to-equity ratio for Autoliv Inc. has fluctuated over the past five years. In 2023, the ratio stands at 0.73, which indicates that the company's debt levels are 73% of its equity. This represents a slight increase compared to 2022 when the ratio was 0.68.
The increase in the debt-to-equity ratio from 2022 to 2023 suggests that Autoliv Inc. may have taken on more debt relative to its equity position during the year. It is important to note that a higher debt-to-equity ratio can indicate higher financial risk, as the company is relying more on debt financing.
Compared to 2021, when the ratio was 0.76, the current ratio of 0.73 represents a slight improvement. In 2020 and 2019, the debt-to-equity ratios were higher at 1.00 and 0.99 respectively, indicating that Autoliv Inc. had higher levels of debt relative to its equity in those years.
Overall, the trend in Autoliv Inc.'s debt-to-equity ratio over the past five years suggests some variability in the company's capital structure and financial leverage. The company may need to carefully manage its debt levels to maintain a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023