Ball Corporation (BALL)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 8,070,000 | 7,990,000 | 8,030,000 | 8,300,000 | 6,337,000 |
| Total stockholders’ equity | US$ in thousands | 3,769,000 | 3,461,000 | 3,627,000 | 3,275,000 | 2,949,000 |
| Debt-to-capital ratio | 0.68 | 0.70 | 0.69 | 0.72 | 0.68 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $8,070,000K ÷ ($8,070,000K + $3,769,000K)
= 0.68
The debt-to-capital ratio of Ball Corp. has shown a fluctuating trend over the past five years. The ratio decreased from 0.73 in 2019 to 0.69 in 2023, indicating a reduction in the proportion of debt relative to the company's total capital. This downward trend suggests that Ball Corp. may have been effectively managing its debt levels in recent years.
Although there was a slight increase in the ratio in 2022 to 0.72, the overall downward movement in the ratio indicates a relatively conservative approach towards debt management by the company. A lower debt-to-capital ratio generally signifies a lower financial risk, as it implies that a smaller portion of the company's capital structure is funded through debt.
Overall, the decreasing trend in the debt-to-capital ratio of Ball Corp. over the period from 2019 to 2023 suggests a prudent financial strategy in terms of debt utilization and capital structure management. It is essential to continue monitoring this ratio to assess the company's ongoing ability to balance its debt and equity components effectively.
Peer comparison
Dec 31, 2023