Axalta Coating Systems Ltd (AXTA)
Debt-to-capital ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,401,000 | — | — | — | 3,478,000 | — | — | — | 3,673,300 | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,912,000 | 1,905,000 | 1,773,000 | 1,731,000 | 1,727,000 | 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 |
| Debt-to-capital ratio | 0.64 | 0.00 | 0.00 | 0.00 | 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 |
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 been relatively stable and consistently low over the past years, indicating a conservative approach towards leveraging. As per the data provided, the ratio was at 0.72% as of December 31, 2022, which saw a slight increase compared to previous periods where it was at 0.00%. However, in the subsequent quarters, the ratio decreased back to 0.67% as of December 31, 2023, and further dropped to 0.64% by December 31, 2024.
This low debt-to-capital ratio suggests that Axalta Coating Systems Ltd is relying more on equity financing rather than debt to fund its operations and investments. While a higher debt-to-capital ratio can indicate higher financial risk due to increased debt obligations, a lower ratio like the one observed for Axalta Coating Systems Ltd reflects a stronger financial position and better solvency. It shows that the company has a lower reliance on debt to finance its operations, which can provide more stability during economic downturns or volatile market conditions.
Peer comparison
Dec 31, 2024