Bunge Limited (BG)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,913,000 | 10,851,000 | 9,224,000 | 7,669,000 | 6,069,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $9,913,000K
= 0.00
Based on the data provided, Bunge Limited has maintained a consistent debt-to-equity ratio of 0.00 from December 31, 2020, to December 31, 2024. A debt-to-equity ratio of 0.00 indicates that the company has no debt or has minimal debt in relation to its equity. This can be seen as a positive sign, showcasing that Bunge Limited is not relying heavily on debt to finance its operations and growth.
Having a low or zero debt-to-equity ratio can imply lower financial risk for the company as it has a lower debt burden to repay. It also signifies that Bunge Limited may have a strong equity base, which can provide stability and flexibility in its capital structure.
However, it's essential to consider that a zero debt-to-equity ratio may also signal that the company is not taking advantage of debt financing opportunities that could potentially enhance its returns. While a conservative capital structure can be advantageous in terms of risk management, it may limit the company's ability to leverage debt for growth or investment purposes.
In conclusion, Bunge Limited's consistent zero debt-to-equity ratio suggests a cautious approach towards debt management, emphasizing a more conservative financial structure. This decision may have both advantages in terms of lower financial risk and potential limitations in accessing additional capital through debt financing.
Peer comparison
Dec 31, 2024