American Axle & Manufacturing (AXL)
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 | 2,794,700 | 2,896,800 | 3,119,100 | 3,486,900 | — |
| Total assets | US$ in thousands | 5,356,300 | 5,469,400 | 5,635,700 | 5,916,300 | 6,644,600 |
| Debt-to-assets ratio | 0.52 | 0.53 | 0.55 | 0.59 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,794,700K ÷ $5,356,300K
= 0.52
The debt-to-assets ratio for American Axle & Manufacturing Holdings Inc has demonstrated a gradual decline from 0.58 in 2020 to 0.52 in 2023. This trend suggests a relative improvement in the company's ability to finance its assets through debt over the years.
A decreasing debt-to-assets ratio indicates that the company is relying less on debt to fund its operations and investments compared to its total assets. This could be a positive sign for the company as lower levels of debt relative to assets can signify lower financial risk and greater financial stability.
However, it is worth noting that the ratio fluctuated between 0.52 and 0.55 between 2021 and 2023, indicating some variability in the company's debt management strategy during these years. Overall, a debt-to-assets ratio in the range of 0.52 to 0.58 suggests that American Axle & Manufacturing Holdings Inc maintains a moderate level of leverage, balancing the use of debt to finance its operations while maintaining a healthy asset base.
Further qualitative analysis and comparison with industry benchmarks would provide additional insights into the company's debt management practices and financial health.
Peer comparison
Dec 31, 2023