Chemours Co (CC)
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 | 3,987,000 | 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-equity ratio | 5.41 | 3.24 | 3.44 | 4.93 | 5.84 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,987,000K ÷ $737,000K
= 5.41
The debt-to-equity ratio for Chemours Co has fluctuated over the past five years, indicating varying levels of financial leverage. In 2023, the ratio stands at 5.41, showcasing a significant increase from 2022 when it was at 3.24. This surge suggests that the company has increased its reliance on debt financing relative to equity, potentially indicating a higher financial risk.
Comparing the 2023 ratio to the figures from 2021 to 2019, we observe a pattern of fluctuation in the debt-to-equity ratio. In 2021, the ratio was 3.44, which was lower than in 2020 (4.93) but higher than in 2019 (5.84). These fluctuations indicate that Chemours Co has been actively managing its capital structure, adjusting the proportion of debt and equity in its financing mix over the years.
The observed increase in the debt-to-equity ratio in 2023 may be a cause for concern as it indicates a higher level of debt relative to equity, potentially leading to increased financial risk and vulnerability to economic challenges. Investors and stakeholders should closely monitor this ratio to assess the company's ability to meet its debt obligations and sustain its growth in the long term.
Peer comparison
Dec 31, 2023