Brunswick Corporation (BC)
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 | 1,975,700 | 2,420,000 | 1,779,000 | 908,300 | 1,068,000 |
| Total stockholders’ equity | US$ in thousands | 2,087,400 | 2,042,300 | 1,914,200 | 1,510,000 | 1,300,900 |
| Debt-to-capital ratio | 0.49 | 0.54 | 0.48 | 0.38 | 0.45 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,975,700K ÷ ($1,975,700K + $2,087,400K)
= 0.49
The debt-to-capital ratio for Brunswick Corp. has fluctuated over the past five years, ranging from 0.39 to 0.55. The ratio indicates the proportion of the company's capital structure that is funded by debt, with the remainder funded by equity.
In 2023, the debt-to-capital ratio stands at 0.54, showing a slight decrease from the previous year's ratio of 0.55. This suggests that Brunswick Corp. relies more on debt to finance its operations and investments compared to equity, although the reduction in the ratio may indicate a decrease in leverage or an increase in equity funding.
Comparing the current ratio to earlier years, it is higher than the ratios in 2020 and 2019 but lower than the ratio in 2021. This indicates potential changes in the company's capital structure and its approach to financing, possibly influenced by its growth strategy, market conditions, or management decisions.
Overall, while the debt-to-capital ratio for Brunswick Corp. has fluctuated over the years, it is important for investors and stakeholders to monitor these trends to evaluate the company's financial health, risk exposure, and management of its capital structure.
Peer comparison
Dec 31, 2023