American Axle & Manufacturing (AXL)
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 | 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-equity ratio | 4.62 | 4.62 | 6.81 | 9.41 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,794,700K ÷ $604,900K
= 4.62
The debt-to-equity ratio of American Axle & Manufacturing Holdings Inc has fluctuated over the past five years, indicating varying levels of leverage within the company. The ratio has shown a declining trend from 2019 to 2021, with a significant decrease from 9.33 in 2020 to 6.78 in 2021. However, there was a slight increase in 2022 to 4.66, followed by a further increase to 4.58 in 2023.
A higher debt-to-equity ratio suggests that the company relies more on debt financing relative to equity, which can indicate higher financial risk. The latest ratio of 4.58 in 2023 indicates that the company's debt obligations are approximately 4.58 times the size of its equity.
Overall, the trend in the debt-to-equity ratio of American Axle & Manufacturing Holdings Inc implies a level of leverage that has been fluctuating in recent years. Further analysis of the company's financial health, including its ability to service debt and generate returns for shareholders, would be necessary to fully assess the implications of these ratios.
Peer comparison
Dec 31, 2023