Axalta Coating Systems Ltd (AXTA)
Debt-to-equity 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-equity ratio | 2.01 | 2.53 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,478,500K ÷ $1,727,300K
= 2.01
The debt-to-equity ratio of Axalta Coating Systems Ltd has shown a decreasing trend over the past five years, declining from 2.83 in 2019 to 2.03 in 2023. This indicates that the company has been reducing its reliance on debt financing relative to equity financing during this period. A lower debt-to-equity ratio may suggest a lower financial risk for the company as it indicates a stronger financial position and less financial leverage. However, it is important to consider the industry norms and the company's specific circumstances when interpreting this ratio. Overall, the decreasing trend in the debt-to-equity ratio for Axalta Coating Systems Ltd is a positive sign for investors and creditors, as it indicates a more conservative capital structure.
Peer comparison
Dec 31, 2023