Brunswick Corporation (BC)
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 | 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-equity ratio | 0.95 | 1.18 | 0.93 | 0.60 | 0.82 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,975,700K ÷ $2,087,400K
= 0.95
The debt-to-equity ratio of Brunswick Corp. has fluctuated over the past five years. In 2023, the ratio stands at 1.16, indicating a higher level of debt compared to equity in the company's capital structure. This suggests that Brunswick Corp. relies more on debt financing to support its operations and growth initiatives.
Compared to 2022 and 2021, where the ratios were 1.23 and 0.95 respectively, the increase in 2023 could signify a potential increase in debt or a decrease in equity during the year. It's crucial to investigate the reasons behind this change to assess the company's financial health and risk profile accurately.
In 2020 and 2019, the debt-to-equity ratios were 0.63 and 0.85, indicating a lower reliance on debt financing relative to equity. This could suggest a more conservative financial strategy during those years, where the company may have focused on maintaining a healthier balance between debt and equity in its capital structure.
Overall, monitoring the trend of the debt-to-equity ratio over time is essential for understanding how Brunswick Corp. manages its financial leverage and evaluating its ability to meet debt obligations while maximizing returns for shareholders.
Peer comparison
Dec 31, 2023