Brinks Company (BCO)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,262,500 | 3,273,200 | 2,841,700 | 2,334,200 | 1,554,800 |
| Total assets | US$ in thousands | 6,601,800 | 6,366,000 | 5,566,700 | 5,135,600 | 3,763,800 |
| Debt-to-assets ratio | 0.49 | 0.51 | 0.51 | 0.45 | 0.41 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,262,500K ÷ $6,601,800K
= 0.49
The debt-to-assets ratio of Brink`s Co. has been relatively stable over the past five years, ranging between 0.44 and 0.53. This ratio indicates the proportion of the company's assets financed by debt, with higher values suggesting higher levels of debt relative to total assets.
The consistent ratio of around 0.53 in the last three years demonstrates that more than half of Brink`s Co.'s assets are financed through debt. This may suggest that the company relies significantly on borrowing to fund its operations or investments.
The slight increase in the ratio from 0.48 in 2020 to 0.53 in 2021, which has been maintained in subsequent years, could signal an increase in debt relative to assets during these periods. This shift may have been a strategic decision to fund growth opportunities or manage liquidity constraints.
Overall, a debt-to-assets ratio of 0.53 signifies that a significant portion of Brink`s Co.'s assets are leveraged by debt, highlighting the importance of monitoring the company's debt levels and financial leverage in relation to its overall financial health and risk profile.
Peer comparison
Dec 31, 2023