Smith AO Corporation (AOS)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 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 | 1,666,800 | 1,656,200 | 1,725,100 | 1,749,200 |
| Debt-to-capital ratio | 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 | 0.14 | 0.16 | 0.17 | 0.14 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $117,300K ÷ ($117,300K + $1,844,400K)
= 0.06
A.O. Smith Corp.'s debt-to-capital ratio has been relatively stable over the past eight quarters, ranging from 0.06 to 0.16. The ratio indicates the proportion of the company's capital structure that is funded by debt. A lower ratio suggests lower financial risk, as the company relies less on borrowing to fund its operations and investments.
In the most recent quarter (Q4 2023), the debt-to-capital ratio remained consistent at 0.06, which indicates a conservative capital structure with a higher proportion of equity financing. This implies that the company has a lower level of financial leverage and may have more flexibility in managing its debt obligations.
Overall, A.O. Smith Corp.'s consistent debt-to-capital ratio within the range of 0.06 to 0.16 over the past eight quarters suggests a prudent approach to managing its capital structure and financial risk. However, investors and analysts should continue to monitor changes in this ratio to assess the company's evolving financial position and leverage levels.
Peer comparison
Dec 31, 2023