Smith AO Corporation (AOS)
Debt-to-equity 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-equity ratio | 0.06 | 0.06 | 0.10 | 0.18 | 0.19 | 0.16 | 0.16 | 0.16 | 0.10 | 0.05 | 0.05 | 0.05 | 0.06 | 0.06 | 0.17 | 0.21 | 0.17 | 0.19 | 0.20 | 0.16 |
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 shown variability over the past eight quarters. In Q1 2023, the ratio was highest at 0.19, indicating a higher proportion of debt relative to equity. This was followed by a decrease in Q2 2023 to 0.11, suggesting a reduction in debt or an increase in equity. Subsequently, in Q3 and Q4 2023, the ratio remained stable at 0.07, signifying a balanced mix of debt and equity.
Comparing to the previous year, there has been a downward trend in the debt-to-equity ratio from Q4 2022 (0.20) to Q1 2023 (0.19) and then an overall improvement in subsequent quarters. This indicates a potential focus on reducing debt levels or increasing equity investment to strengthen the company's financial position.
Overall, monitoring the debt-to-equity ratio of A.O. Smith Corp. provides insights into the company's capital structure and financial health, highlighting its ability to manage debt and leverage equity effectively over the observed period.
Peer comparison
Dec 31, 2023