Allegheny Technologies Incorporated (ATI)
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 | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,373,000 | 1,045,900 | 685,600 | 521,100 | 2,090,100 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,373,000K
= 0.00
The debt-to-equity ratio of ATI Inc has shown a fluctuating trend over the past five years. In 2019, the ratio was relatively low at 0.67, indicating a conservative capital structure with more equity financing compared to debt. However, from 2020 to 2021, there was a significant increase in the ratio to 3.01, reflecting a substantial rise in debt relative to equity, suggesting a higher financial leverage and potential risk.
Subsequently, in 2022 and 2023, there was a slight improvement in the debt-to-equity ratio to 1.67 and 1.59, respectively. While the ratio remains above 1 in these years, indicating that the company still has more debt than equity, the decreasing trend suggests a move towards a more balanced capital structure.
Overall, ATI Inc's debt-to-equity ratio has been volatile, with a mix of high and low ratios in recent years. It is essential for the company to carefully manage its debt levels to maintain a healthy financial position and mitigate potential risks associated with excessive leverage.