Axalta Coating Systems Ltd (AXTA)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,401,000 | 3,478,000 | 3,673,300 | — | — |
| Total stockholders’ equity | US$ in thousands | 1,912,000 | 1,727,000 | 1,453,500 | 1,492,900 | 1,433,000 |
| Debt-to-capital ratio | 0.64 | 0.67 | 0.72 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,401,000K ÷ ($3,401,000K + $1,912,000K)
= 0.64
The debt-to-capital ratio of Axalta Coating Systems Ltd has shown an increasing trend over the past years. Between December 31, 2020, and December 31, 2024, the ratio rose from 0.00 to 0.64, indicating that the company has started to rely more on debt to finance its operations compared to its capital. This increase suggests a higher proportion of debt in the company's capital structure, which may increase financial risk and interest payments. However, it is important to note that the ratio is still below 1, indicating that the company's capital (equity and debt) is more than its total debt, providing a buffer against financial distress. It would be advisable for stakeholders to monitor this ratio closely to assess the company's financial leverage and its ability to meet debt obligations.
Peer comparison
Dec 31, 2024