Allegheny Technologies Incorporated (ATI)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 4,985,100 | 4,445,600 | 4,285,200 | 4,034,900 | 5,634,600 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $4,985,100K
= 0.00
The debt-to-assets ratio of ATI Inc has shown fluctuating trends over the past five years. In 2019, the ratio was at its lowest point of 0.25, indicating that the company had a lower proportion of debt relative to its total assets. However, over the following years, the ratio increased, reaching a peak of 0.44 in 2023.
A higher debt-to-assets ratio suggests that a larger portion of the company's assets is funded by debt, which can indicate higher financial leverage and potential risk due to interest payments and repayment obligations. Conversely, a lower ratio indicates a lower reliance on debt financing and may signal a more conservative financial structure.
Although the ratio has fluctuated, it is important to consider the context of the company's overall financial health, industry benchmarks, and business strategy when evaluating the significance of these changes. Further analysis of ATI Inc's debt levels, asset composition, profitability, and cash flow would provide a more comprehensive understanding of its financial position and debt management practices.