Barnes Group Inc (B)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 569,639 | 599,932 | 699,868 | 825,017 |
| Total assets | US$ in thousands | 3,308,010 | 2,413,700 | 2,576,800 | 2,676,200 | 2,738,300 |
| Debt-to-assets ratio | 0.00 | 0.24 | 0.23 | 0.26 | 0.30 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $3,308,010K
= 0.00
The debt-to-assets ratio of Barnes Group Inc. has fluctuated over the past five years, indicating changes in the company's capital structure and financial leverage. The ratio increased from 0.30 in 2019 to 0.26 in 2020, before witnessing a significant jump to 0.39 in 2023. This increase suggests that the company has taken on more debt relative to its total assets in 2023 compared to the previous years.
A higher debt-to-assets ratio could indicate higher financial risk for the company, as it implies that a larger portion of its assets is financed through debt rather than equity. However, it can also suggest potential for higher returns on equity if investments funded by debt yield higher returns than the cost of servicing the debt.
It is important to delve deeper into the reasons behind this increase in the debt-to-assets ratio to understand whether it is a strategic move by Barnes Group Inc. to fund growth opportunities or if it poses potential solvency risks. Further analysis of the company's overall financial health, cash flow position, and future growth prospects would be essential to assess the implications of the changing debt-to-assets ratio on the company's long-term sustainability.
Peer comparison
Dec 31, 2023