Chemours Co (CC)

Debt-to-equity 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-equity ratio 5.41 5.22 4.46 2.93 3.24 2.73 3.01 3.17 3.44 3.84 4.41 4.67 4.93 5.55 6.59 6.13 5.84 4.79 5.09 4.90

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 of Chemours Co has shown fluctuations over the past few years, indicating varying levels of leverage and financial risk. As of December 31, 2023, the ratio stands at 5.41, signifying that the company has $5.41 in debt for every $1 of equity. This level of leverage has increased compared to the previous quarter, where the ratio was 5.22.

The upward trend in the debt-to-equity ratio from 2019 to 2023 suggests that Chemours Co has been relying more on debt financing to support its operations and growth initiatives. While higher leverage can amplify returns on equity, it also increases the company's financial risk and vulnerability to economic downturns or interest rate hikes.

It is important for investors and stakeholders to monitor the debt-to-equity ratio closely to assess the company's ability to meet its debt obligations and manage financial risks effectively. Additionally, a high debt-to-equity ratio may raise concerns about the company's long-term financial health and sustainability.