Brinks Company (BCO)
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 | 3,262,500 | 3,273,200 | 2,841,700 | 2,334,200 | 1,554,800 |
| Total stockholders’ equity | US$ in thousands | 397,400 | 447,100 | 123,000 | 128,800 | 191,800 |
| Debt-to-equity ratio | 8.21 | 7.32 | 23.10 | 18.12 | 8.11 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,262,500K ÷ $397,400K
= 8.21
The debt-to-equity ratio of Brink`s Co. has shown fluctuating trends over the past five years. In 2023, the ratio increased to 8.89 from 7.61 in 2022, indicating a higher proportion of debt relative to equity in the company's capital structure. This rise suggests an increased reliance on debt financing compared to equity.
When comparing it to the ratios of the previous years, it is evident that the company's debt-to-equity ratio has been experiencing significant variability. In 2021, there was a substantial spike to 24.12, indicating a moment of high leverage during that year. The ratio then decreased in 2022 to 7.61 but climbed back up in 2023.
The fluctuating trend in the debt-to-equity ratio may be a reflection of the company's changing capital structure and financing decisions. A high debt-to-equity ratio implies higher financial risk due to the increased burden of debt obligations. It is essential for investors and stakeholders to monitor these changes over time to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023