Barnes Group Inc (B)
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 | — | 569,639 | 599,932 | 699,868 | 825,017 |
| Total stockholders’ equity | US$ in thousands | 1,362,260 | 1,346,330 | 1,428,770 | 1,382,680 | 1,270,530 |
| Debt-to-equity ratio | 0.00 | 0.42 | 0.42 | 0.51 | 0.65 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,362,260K
= 0.00
The debt-to-equity ratio of Barnes Group Inc. has shown fluctuations over the past five years. In 2019, the ratio was 0.66, indicating that the company had higher levels of debt relative to equity. However, there was a significant decrease in the ratio in subsequent years, reaching its lowest point of 0.42 in 2022 and 2021.
The sudden increase in the ratio to 0.95 in 2023 suggests that Barnes Group Inc. has taken on more debt relative to equity compared to the previous year. This could indicate a shift in the company's financing strategy towards more debt financing, which may have been influenced by various factors such as investment opportunities, market conditions, or strategic decisions.
It is important to note that a higher debt-to-equity ratio generally indicates higher financial risk, as it implies that the company is relying more on debt to finance its operations and growth. Investors and creditors may closely monitor this ratio to assess Barnes Group Inc.'s financial health and ability to meet its debt obligations in the long term.
Peer comparison
Dec 31, 2023