BWX Technologies Inc (BWXT)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,203,420 | 1,282,620 | 1,189,300 | 862,731 | 809,442 |
| Total stockholders’ equity | US$ in thousands | 933,351 | 748,310 | 637,175 | 617,766 | 404,106 |
| Debt-to-capital ratio | 0.56 | 0.63 | 0.65 | 0.58 | 0.67 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,203,420K ÷ ($1,203,420K + $933,351K)
= 0.56
The debt-to-capital ratio of BWX Technologies Inc has shown a fluctuating trend over the past five years. In 2019, the ratio was at its highest level of 0.67, indicating that the company had a relatively higher proportion of debt in its capital structure compared to equity. However, the ratio decreased in 2020 to 0.61, suggesting a lower reliance on debt financing.
Subsequently, the ratio increased in 2021 to 0.65 and then further increased to 0.63 in 2022 before decreasing to 0.56 in 2023. This pattern suggests a mix of both debt and equity financing strategies employed by the company over the years, with some fluctuations in the balance between debt and capital.
Overall, the decreasing trend from 2020 to 2023 indicates a potential strategy of reducing debt and increasing equity in the company's capital structure. However, the ratio still remains above 0.5 in recent years, indicating a significant presence of debt in the company's capital mix. It would be essential to monitor this ratio in the future to assess the company's ongoing approach to capital structure management.
Peer comparison
Dec 31, 2023