Smith AO Corporation (AOS)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 183,200 | 117,300 | 334,500 | 189,900 | 106,400 |
| Total assets | US$ in thousands | 3,240,000 | 3,213,900 | 3,332,300 | 3,474,400 | 3,160,700 |
| Debt-to-assets ratio | 0.06 | 0.04 | 0.10 | 0.05 | 0.03 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $183,200K ÷ $3,240,000K
= 0.06
Smith AO Corporation's debt-to-assets ratio has experienced fluctuations over the past five years.
As of December 31, 2020, the debt-to-assets ratio was at a relatively low level of 0.03, indicating that the company had a low level of debt compared to its total assets.
However, by the end of 2022, the ratio had increased to 0.10, suggesting that the company had taken on more debt relative to its asset base. This could indicate an increased risk for the company as it may have a higher financial leverage.
In 2023, the ratio decreased to 0.04, which may indicate that the company either reduced its debt levels or increased its asset base.
By the end of 2024, the ratio had slightly increased to 0.06, still higher than the 2020 levels but lower than the peak in 2022. This indicates that the company may be managing its debt more effectively compared to 2022.
Overall, the fluctuation in Smith AO Corporation's debt-to-assets ratio over these years suggests varying levels of financial risk and leverage. It is essential for stakeholders to monitor these changes to assess the company's financial health and risk profile accurately.
Peer comparison
Dec 31, 2024