Chemours Co (CC)
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 | 3,987,000 | 3,590,000 | 3,724,000 | 4,005,000 | 4,026,000 |
| Total stockholders’ equity | US$ in thousands | 737,000 | 1,107,000 | 1,081,000 | 813,000 | 689,000 |
| Debt-to-capital ratio | 0.84 | 0.76 | 0.78 | 0.83 | 0.85 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,987,000K ÷ ($3,987,000K + $737,000K)
= 0.84
The debt-to-capital ratio of Chemours Co has fluctuated over the past five years. In 2023, the ratio stands at 0.84, which indicates that 84% of the company's capital structure is financed through debt. This represents an increase from the previous year, where the ratio was 0.76.
Comparing the current ratio to the ratios in 2021, 2020, and 2019, we see a trend of increased reliance on debt financing since 2020 when the ratio was 0.83. It peaked in 2019 at 0.85 before decreasing slightly in the following years.
The increasing trend in the debt-to-capital ratio suggests that Chemours Co has been progressively utilizing more debt to finance its operations and growth. Investors and analysts may keep a close eye on this ratio to assess the company's leverage and financial risk levels over time.
Peer comparison
Dec 31, 2023