Aptiv PLC (APTV)

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	6,204,000	6,419,000	6,476,000	6,473,000	6,460,000	6,336,000	6,433,000	6,503,000	4,059,000	4,000,000	4,031,000	3,946,000	4,011,000	3,935,000	3,946,000	5,964,000	3,971,000	3,939,000	3,997,000	3,995,000
Total stockholders’ equity	US$ in thousands	11,548,000	10,778,000	9,232,000	8,983,000	8,809,000	8,195,000	8,099,000	8,396,000	8,347,000	8,294,000	8,322,000	8,077,000	7,905,000	7,363,000	6,942,000	4,971,000	3,819,000	3,565,000	3,519,000	3,418,000
Debt-to-capital ratio		0.35	0.37	0.41	0.42	0.42	0.44	0.44	0.44	0.33	0.33	0.33	0.33	0.34	0.35	0.36	0.55	0.51	0.52	0.53	0.54

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,204,000K ÷ ($6,204,000K + $11,548,000K)
= 0.35

The debt-to-capital ratio of Aptiv PLC has shown a gradual decrease over the last two years, from 0.44 in Q1 2022 to 0.35 in Q4 2023. This decrease indicates a positive trend in the company's capital structure, as a lower ratio suggests a lower reliance on debt financing relative to its overall capital.

The company has successfully managed its debt levels and improved its capital structure efficiency, which can enhance its financial flexibility and reduce financial risk. The decreasing trend in the debt-to-capital ratio reflects a healthier balance between debt and equity in the company's capital structure, potentially improving its creditworthiness in the eyes of investors and lenders.

Overall, the decreasing debt-to-capital ratio of Aptiv PLC highlights effective debt management and responsible financial decision-making, positioning the company well for long-term sustainability and growth.