Axalta Coating Systems Ltd (AXTA)
Debt-to-equity 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-equity ratio | 2.01 | 0.00 | 0.00 | 0.00 | 2.53 | 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-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,478,500K ÷ $1,727,300K
= 2.01
The debt-to-equity ratio for Axalta Coating Systems Ltd has been fluctuating over the past eight quarters, ranging from 2.03 to 2.93. The ratio indicates that the company's level of debt relative to equity has been relatively high, with values consistently above 2. This suggests that Axalta Coating Systems Ltd relies more heavily on debt financing than equity financing to support its operations and growth.
The decreasing trend observed over the past few quarters (Q4 2022 to Q4 2023) could indicate that the company is taking steps to reduce its debt levels or increase its equity position. However, the ratio remains elevated, indicating that the company's financial structure still carries a significant amount of debt.
It is important for investors and stakeholders to closely monitor the debt-to-equity ratio of Axalta Coating Systems Ltd, as a high ratio can imply higher financial risk and potential challenges in meeting debt obligations. Additionally, the company's future financial strategies and performance will play a key role in determining whether the trend of decreasing debt-to-equity ratio continues in the coming quarters.
Peer comparison
Dec 31, 2023