Allegheny Technologies Incorporated (ATI)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,373,000 | 1,238,900 | 1,194,000 | 1,096,500 | 1,045,900 | 813,500 | 762,900 | 658,700 | 685,600 | 541,400 | 473,000 | 482,900 | 521,100 | 1,733,700 | 1,735,300 | 2,087,800 | 2,090,100 | 2,168,000 | 2,026,400 | 1,934,200 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 fluctuated over the past eight quarters, ranging from 1.49 to 2.77. This ratio indicates the proportion of the company's debt relative to its shareholders' equity, reflecting its financial leverage and risk level.
The trend analysis shows a decreasing trend in the debt-to-equity ratio from Q2 2022 to Q2 2023, which generally indicates a lower reliance on debt financing compared to equity. However, the ratio increased slightly in Q3 2023 before decreasing again in Q4 2023.
While a lower debt-to-equity ratio is often viewed positively as it signifies lower financial risk and better liquidity, a very low ratio may also imply underutilization of debt for potential growth opportunities. Conversely, a high ratio could signal excessive debt burden and financial risk.
Overall, ATI Inc should continue to monitor and manage its debt levels strategically to maintain a balanced capital structure that supports its growth objectives while managing financial risks effectively.