Axalta Coating Systems Ltd (AXTA)
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 | 3,478,500 | 3,673,300 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,727,300 | 1,453,500 | 1,492,900 | 1,433,000 | 1,354,200 |
| Debt-to-capital ratio | 0.67 | 0.72 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,478,500K ÷ ($3,478,500K + $1,727,300K)
= 0.67
The debt-to-capital ratio of Axalta Coating Systems Ltd has shown a decreasing trend over the past five years. In 2019, the ratio was at its highest at 0.74, gradually decreasing to 0.67 in 2023. This indicates that the company has been able to reduce its reliance on debt relative to its total capital over the period.
A declining debt-to-capital ratio can suggest improved financial stability and lower financial risk for the company. It may also indicate that Axalta Coating Systems Ltd has been successful in managing its capital structure by either paying down debt, increasing equity, or a combination of both.
Overall, the decreasing trend in the debt-to-capital ratio for Axalta Coating Systems Ltd reflects a positive trajectory in terms of managing debt levels in relation to its overall capital structure over the last five years.
Peer comparison
Dec 31, 2023