Chemours Co (CC)

Debt-to-capital ratio

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Long-term debt US$ in thousands 3,987,000 3,944,000 3,604,000 3,599,000 3,590,000 3,510,000 3,656,000 3,692,000 3,724,000 3,829,000 3,964,000 3,970,000 4,005,000 4,063,000 4,327,000 4,012,000 4,026,000 4,007,000 4,190,000 3,965,000
Total stockholders’ equity US$ in thousands 737,000 755,000 808,000 1,227,000 1,107,000 1,284,000 1,214,000 1,166,000 1,081,000 998,000 898,000 850,000 813,000 732,000 657,000 655,000 689,000 837,000 823,000 810,000
Debt-to-capital ratio 0.84 0.84 0.82 0.75 0.76 0.73 0.75 0.76 0.78 0.79 0.82 0.82 0.83 0.85 0.87 0.86 0.85 0.83 0.84 0.83

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 been fluctuating over the past few quarters. The ratio was relatively stable around the 0.75 to 0.85 range from March 2020 to September 2022. However, from December 2022 to December 2023, there was a slight increase in the ratio, reaching a peak of 0.84 in September 2023.

A debt-to-capital ratio of 0.84 indicates that approximately 84% of Chemours Co's capital structure is financed by debt, while the remaining 16% is attributed to shareholders' equity. This suggests that the company relies more heavily on debt financing in comparison to equity financing.

It is essential for investors and stakeholders to monitor changes in the debt-to-capital ratio as it provides insights into the company's financial leverage and risk exposure. A higher ratio indicates higher financial risk and potential difficulties in meeting financial obligations, while a lower ratio reflects a stronger financial position with less reliance on debt.