Smith AO Corporation (AOS)
Debt-to-assets 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 | 117,300 | 119,600 | 196,000 | 330,800 | 334,500 | 281,000 | 291,600 | 288,600 | 189,900 | 99,600 | 99,600 | 99,600 | 106,400 | 107,100 | 274,300 | 335,600 | 277,200 | 312,400 | 351,800 | 277,600 |
| Total assets | US$ in thousands | 3,213,900 | 3,200,100 | 3,248,800 | 3,336,300 | 3,332,300 | 3,231,900 | 3,321,400 | 3,434,900 | 3,474,400 | 3,300,000 | 3,140,200 | 3,106,800 | 3,160,700 | 2,971,100 | 2,984,200 | 2,983,000 | 3,058,000 | 3,067,900 | 3,175,600 | 3,143,500 |
| Debt-to-assets ratio | 0.04 | 0.04 | 0.06 | 0.10 | 0.10 | 0.09 | 0.09 | 0.08 | 0.05 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.09 | 0.11 | 0.09 | 0.10 | 0.11 | 0.09 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $117,300K ÷ $3,213,900K
= 0.04
The debt-to-assets ratio of A.O. Smith Corp. has shown some fluctuation over the past eight quarters. The ratio stood at 0.04 in both Q4 2023 and Q3 2023, indicating that only 4% of the company's assets were financed by debt during these periods. This suggests a conservative debt structure and a strong asset base.
However, in Q2 2023, the ratio increased to 0.06, indicating a slight increase in the proportion of debt used to finance assets. This could be a signal of changes in the company's capital structure or investment strategy during that quarter.
The ratio then rose to 0.10 in Q1 2023 and remained at this level in Q4 2022, implying that 10% of the company's assets were funded by debt in these quarters. This level of leverage may indicate a moderate risk level associated with the company's debt obligations.
In contrast, the ratio remained relatively stable at 0.09 in Q3 2022, Q2 2022, and Q1 2022, suggesting a consistent approach to debt management and asset financing during these periods.
Overall, the trend in A.O. Smith Corp.'s debt-to-assets ratio reflects a generally prudent approach to capital structure management, with low to moderate levels of debt used to support the company's asset base over the past eight quarters.
Peer comparison
Dec 31, 2023