Aptiv PLC (APTV)
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 | 7,843,000 | 6,204,000 | 6,460,000 | 4,059,000 | 4,011,000 |
| Total stockholders’ equity | US$ in thousands | 8,796,000 | 11,548,000 | 8,809,000 | 8,347,000 | 7,905,000 |
| Debt-to-equity ratio | 0.89 | 0.54 | 0.73 | 0.49 | 0.51 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $7,843,000K ÷ $8,796,000K
= 0.89
The Debt-to-Equity ratio of Aptiv PLC has shown some fluctuations over the past five years. As of December 31, 2020, the ratio stood at 0.51, indicating that the company had $0.51 in debt for every $1 of equity. The ratio slightly decreased to 0.49 by December 31, 2021, suggesting a slight improvement in the company's leverage position.
However, by December 31, 2022, the Debt-to-Equity ratio increased to 0.73, which may signal a higher level of debt relative to equity, potentially indicating increased financial risk. The ratio then decreased to 0.54 by December 31, 2023, pointing towards a better balance between debt and equity.
The most significant change occurred by December 31, 2024, where the Debt-to-Equity ratio spiked to 0.89. This sharp increase implies a higher reliance on debt financing compared to equity, which might pose challenges in terms of financial stability and potential solvency issues.
In summary, Aptiv PLC's Debt-to-Equity ratio has displayed variability over the years, indicating fluctuations in the company's capital structure and financial leverage. It is essential for stakeholders to closely monitor these changes to assess the company's financial health and risk profile accurately.
Peer comparison
Dec 31, 2024