Aptiv PLC (APTV)

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	6,204,000	6,460,000	4,059,000	4,011,000	3,971,000
Total stockholders’ equity	US$ in thousands	11,548,000	8,809,000	8,347,000	7,905,000	3,819,000
Debt-to-equity ratio		0.54	0.73	0.49	0.51	1.04

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,204,000K ÷ $11,548,000K
= 0.54

The debt-to-equity ratio of Aptiv PLC has fluctuated over the past five years, indicating varying levels of debt relative to equity within the company's capital structure.

In 2019, the ratio was highest at 1.14, signifying that the company had more debt than equity. This could raise concerns about the company's financial stability and potential liquidity risks.

From 2019 to 2021, there was a significant decrease in the debt-to-equity ratio to 0.49, suggesting a more conservative approach to leverage and a stronger equity position in relation to debt. This lower ratio indicates a healthier balance between debt and equity financing.

However, in 2022, the ratio increased to 0.74, indicating an uptick in the company's debt levels relative to equity. This increase may signal an increased reliance on debt financing, which could potentially lead to higher interest expenses and financial risks.

By the end of 2023, the debt-to-equity ratio further decreased to 0.54, which is still higher than the 2021 level but lower than the 2022 ratio. This suggests that Aptiv PLC is managing its debt levels more effectively compared to the previous year.

Overall, Aptiv PLC's debt-to-equity ratio demonstrates fluctuations in the company's capital structure and financial leverage over the five-year period, with varying implications for its financial health and risk profile. It is essential for stakeholders to monitor these changes to assess the company's ability to meet its financial obligations and sustain long-term growth.