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.