Smith AO Corporation (AOS)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 117,300 | 334,500 | 189,900 | 106,400 | 277,200 |
| Total stockholders’ equity | US$ in thousands | 1,844,400 | 1,747,700 | 1,832,200 | 1,848,300 | 1,666,800 |
| Debt-to-equity ratio | 0.06 | 0.19 | 0.10 | 0.06 | 0.17 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $117,300K ÷ $1,844,400K
= 0.06
The debt-to-equity ratio of A.O. Smith Corp. has fluctuated over the past five years, with the trend moving as follows:
- In 2023, the debt-to-equity ratio stands at 0.07, indicating a low level of debt in relation to equity.
- In 2022, the ratio increased to 0.20, reflecting a higher proportion of debt relative to equity compared to the previous year.
- In 2021, the ratio decreased to 0.11, indicating a lower reliance on debt financing compared to the prior year.
- In 2020, the ratio was at 0.06, signaling a minimal amount of debt compared to equity.
- In 2019, the ratio increased to 0.17, showing a higher level of debt relative to equity.
Overall, the company has shown varying levels of leverage over the years, with a general trend towards lower debt-to-equity ratios in 2020 and 2023, and higher ratios in 2019 and 2022. This suggests that A.O. Smith Corp. has been managing its debt levels differently each year, impacting its financial risk and capital structure.
Peer comparison
Dec 31, 2023