Axalta Coating Systems Ltd (AXTA)
Debt-to-assets 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 | 3,478,500 | — | — | — | 3,673,300 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total assets | US$ in thousands | 7,272,100 | 6,996,000 | 7,043,100 | 7,000,600 | 7,059,200 | 6,819,000 | 6,942,600 | 7,081,500 | 7,217,200 | 7,233,000 | 7,209,400 | 7,020,800 | 7,157,200 | 7,036,500 | 6,668,600 | 6,390,700 | 6,818,000 | 6,690,000 | 6,692,900 | 6,673,400 |
| Debt-to-assets ratio | 0.48 | 0.00 | 0.00 | 0.00 | 0.52 | 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-assets ratio = Long-term debt ÷ Total assets
= $3,478,500K ÷ $7,272,100K
= 0.48
The debt-to-assets ratio of Axalta Coating Systems Ltd has been relatively stable over the past eight quarters, ranging from 0.48 to 0.55. This ratio indicates the proportion of the company's total liabilities to its total assets. A lower debt-to-assets ratio suggests that the company relies less on debt to finance its operations and investments, while a higher ratio indicates higher financial leverage and dependency on debt.
In the case of Axalta Coating Systems Ltd, the ratio has hovered around 0.50, indicating that the company has been moderately leveraging debt as part of its capital structure. However, it is important to note that the trend has been slightly decreasing from 0.55 in Q3 2022 to 0.48 in Q4 2023. This downward trend may suggest that the company is either reducing its debt levels or increasing its asset base.
Overall, the debt-to-assets ratio provides insights into Axalta's solvency and financial risk management. While the company's current ratio indicates a moderate level of leverage, further analysis of its debt composition and sustainability would be necessary to fully assess its financial health and risk profile.
Peer comparison
Dec 31, 2023