Smith AO Corporation (AOS)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 1,883,500 | 1,844,400 | 1,747,700 | 1,832,200 | 1,848,300 |
| Debt-to-equity ratio | 0.10 | 0.06 | 0.19 | 0.10 | 0.06 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $183,200K ÷ $1,883,500K
= 0.10
The debt-to-equity ratio of Smith AO Corporation has shown fluctuations over the past five years. As of December 31, 2020, the ratio was 0.06, indicating that the company had a low level of debt relative to its equity. This could suggest a conservative financing strategy.
By December 31, 2021, the debt-to-equity ratio increased to 0.10, signaling a slight rise in debt compared to equity. This could imply a shift towards utilizing more debt to finance operations or investments.
The ratio continued to increase to 0.19 by December 31, 2022, reaching a relatively higher level of debt relative to equity. This could potentially indicate increased leverage in the company's capital structure, which may carry higher financial risk.
However, by December 31, 2023, the debt-to-equity ratio decreased back to 0.06, returning to the low level of debt observed in 2020. This fluctuation may reflect changes in the company's debt and equity positions or strategic decisions regarding capital structure.
As of December 31, 2024, the ratio was back at 0.10, mirroring the levels seen in 2021. This suggests a possible stabilization or reversion to the previous balance between debt and equity within the company.
Overall, the fluctuating trend in Smith AO Corporation's debt-to-equity ratio over the five-year period indicates variability in the company's capital structure and financing decisions, which may have implications for its financial health and risk profile.
Peer comparison
Dec 31, 2024