American Axle & Manufacturing (AXL)
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 | 2,794,700 | 2,896,800 | 3,119,100 | 3,486,900 | — |
| Total stockholders’ equity | US$ in thousands | 604,900 | 627,300 | 457,800 | 370,500 | 977,600 |
| Debt-to-capital ratio | 0.82 | 0.82 | 0.87 | 0.90 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,794,700K ÷ ($2,794,700K + $604,900K)
= 0.82
The debt-to-capital ratio of American Axle & Manufacturing Holdings Inc has shown some fluctuation over the past five years.
As of December 31, 2023, the debt-to-capital ratio was 0.82, indicating that 82% of the company's capital structure was funded by debt. This ratio remained consistent compared to the previous year, December 31, 2022.
In 2021 and 2020, the debt-to-capital ratio was 0.87 and 0.90, respectively, suggesting that the company relied more heavily on debt to finance its operations during those years. However, the ratio decreased to 0.79 in 2019, indicating a lower reliance on debt financing that year.
Overall, the debt-to-capital ratio of American Axle & Manufacturing Holdings Inc has remained relatively high, hovering around the 0.80 to 0.90 range in recent years. This suggests that the company has a significant portion of its capital structure funded by debt, which may entail higher financial risk but could also potentially lead to higher returns for investors.
Peer comparison
Dec 31, 2023