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.
Peer comparison
Dec 31, 2023