Axalta Coating Systems Ltd (AXTA)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,727,300 | 1,604,100 | 1,644,200 | 1,570,100 | 1,453,500 | 1,273,300 | 1,326,200 | 1,375,400 | 1,492,900 | 1,440,800 | 1,488,300 | 1,359,400 | 1,433,000 | 1,339,700 | 1,213,100 | 1,291,000 | 1,354,200 | 1,285,700 | 1,252,500 | 1,206,200 |
| Debt-to-capital ratio | 0.67 | 0.00 | 0.00 | 0.00 | 0.72 | 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-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 eight quarters, starting at 0.72 in Q4 2022 and reaching 0.67 in Q4 2023. This downward trend indicates that the company has been using less debt relative to its total capital over time.
While the ratio fluctuated slightly between Q1 2022 and Q3 2023, it remained relatively stable within the range of 0.67 to 0.75, indicating a moderate level of leverage. A debt-to-capital ratio below 1 suggests that the company's capital structure is dominated by equity rather than debt.
Overall, the declining trend in the debt-to-capital ratio suggests that Axalta Coating Systems Ltd has been gradually reducing its reliance on debt financing, which may indicate a more conservative approach to managing its financial leverage.
Peer comparison
Dec 31, 2023