Ball Corporation (BALL)
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 | 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-equity ratio | 2.14 | 2.31 | 2.21 | 2.53 | 2.15 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $8,070,000K ÷ $3,769,000K
= 2.14
The debt-to-equity ratio of Ball Corp. has shown fluctuation over the past five years. In 2023, the ratio decreased to 2.27 from 2.59 in 2022, indicating a reduction in the proportion of debt relative to equity. This could signify that the company has either paid down its debt, increased its equity, or a combination of both.
Comparing 2023 to 2021, the debt-to-equity ratio has increased from 2.13 to 2.27, suggesting a higher level of debt relative to equity in 2023. This could indicate increased borrowing or a reduction in equity during the year.
Furthermore, the ratio in 2020 was 2.38, slightly higher than in 2023. The decrease in the ratio from 2020 to 2023 could suggest a positive trend in the company's capital structure with potentially a reduced reliance on debt financing relative to equity.
Lastly, comparing the most recent data to 2019, where the ratio stood at 2.65, the downward trend in the debt-to-equity ratio over the five-year period is more evident. This reduction could imply that Ball Corp. has been actively managing its debt levels or strategically increasing its equity base over the years.
Overall, the fluctuation in Ball Corp.'s debt-to-equity ratio indicates changes in its capital structure and financial risk profile over the past five years.
Peer comparison
Dec 31, 2023