Crown Holdings Inc (CCK)
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 | 6,699,000 | 6,792,000 | 6,052,000 | 8,023,000 | 7,818,000 |
| Total stockholders’ equity | US$ in thousands | 2,410,000 | 1,849,000 | 1,912,000 | 2,198,000 | 1,713,000 |
| Debt-to-capital ratio | 0.74 | 0.79 | 0.76 | 0.78 | 0.82 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,699,000K ÷ ($6,699,000K + $2,410,000K)
= 0.74
The debt-to-capital ratio of Crown Holdings, Inc. has shown a slight decrease over the past five years, dropping from 0.82 in 2019 to 0.76 in 2023. This ratio indicates that the company relies more on debt financing than equity financing to fund its operations and growth.
A decrease in the debt-to-capital ratio over time is generally positive, as it could suggest that the company is managing its debt levels effectively and/or increasing its equity base. However, it is important to note that a higher debt-to-capital ratio can also indicate a higher financial risk due to increased debt obligations.
Overall, Crown Holdings, Inc. appears to have made progress in reducing its reliance on debt relative to its total capital structure, which could potentially improve its financial stability and creditworthiness in the long term.
Peer comparison
Dec 31, 2023