Smith AO Corporation (AOS)
Debt-to-capital ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 183,200 | 109,700 | 130,400 | 109,700 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,883,500 | 1,916,700 | 1,911,600 | 1,881,800 | 1,844,400 | 1,882,400 | 1,888,400 | 1,790,200 | 1,747,700 | 1,747,800 | 1,792,500 | 1,808,900 | 1,832,200 | 1,896,500 | 1,816,300 | 1,849,000 | 1,848,300 | 1,747,100 | 1,658,100 | 1,616,300 |
| Debt-to-capital ratio | 0.09 | 0.05 | 0.06 | 0.06 | 0.06 | 0.06 | 0.09 | 0.16 | 0.16 | 0.14 | 0.14 | 0.14 | 0.09 | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | 0.14 | 0.17 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $183,200K ÷ ($183,200K + $1,883,500K)
= 0.09
The debt-to-capital ratio of Smith AO Corporation has fluctuated over the given period. It decreased from 0.17 as of March 31, 2020, to 0.05 as of December 31, 2020, indicating a significant reduction in debt relative to capital during that time. The ratio remained relatively stable at 0.05 from March 31, 2021, to September 30, 2021.
There was a slight increase in the ratio to 0.09 as of December 31, 2021, and this trend continued into March 31, 2022. The ratio rose to 0.16 by December 31, 2022, before dropping to 0.06 by June 30, 2023. It continued to decrease to 0.05 as of December 31, 2024.
Overall, the debt-to-capital ratio of Smith AO Corporation exhibited fluctuations, with periods of both increase and decrease over the analyzed period. It is essential to monitor this ratio to assess the company's leverage and its ability to meet its debt obligations relative to its total capital structure.
Peer comparison
Dec 31, 2024