Allegheny Technologies Incorporated (ATI)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,373,000 | 1,045,900 | 685,600 | 521,100 | 2,090,100 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,373,000K)
= 0.00
The debt-to-capital ratio of ATI Inc has shown a declining trend over the past five years, reflecting a decreasing reliance on debt in relation to total capital. As of December 31, 2023, the ratio stands at 0.61, indicating that 61% of the company's capital structure is funded by debt, while the remaining 39% is funded by equity.
This suggests that ATI Inc has been able to reduce its debt levels relative to its total capital, which can be seen as a positive sign of financial strength and stability. A lower debt-to-capital ratio generally indicates a lower financial risk and a healthier balance sheet, as the company is less vulnerable to fluctuations in interest rates or facing challenges in meeting its debt obligations.
Overall, the decreasing trend in the debt-to-capital ratio of ATI Inc over the past five years implies that the company has been effectively managing its capital structure by reducing its debt levels and maintaining a balanced mix of debt and equity financing.