Axalta Coating Systems Ltd (AXTA)
Debt-to-equity 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-equity ratio | 1.78 | 2.01 | 2.53 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,401,000K ÷ $1,912,000K
= 1.78
Based on the provided data, the debt-to-equity ratio for Axalta Coating Systems Ltd has shown a significant increase from 0.00 in 2020 and 2021 to 2.53 in 2022. This sharp rise indicates that the company has started to rely more on debt to finance its operations compared to equity. However, in the following years the ratio has decreased slightly to 2.01 in 2023 and further to 1.78 in 2024, suggesting that the company may be managing its debt levels more effectively or leveraging more equity in its capital structure. Overall, the trend in the debt-to-equity ratio indicates fluctuations in the company's capital structure and its approach to balancing debt and equity in its financial operations. It would be important to further investigate the reasons behind these changes and assess their impact on the company's financial health and risk profile.
Peer comparison
Dec 31, 2024