Crown Holdings Inc (CCK)
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 | 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-equity ratio | 2.78 | 3.67 | 3.17 | 3.65 | 4.56 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,699,000K ÷ $2,410,000K
= 2.78
The debt-to-equity ratio of Crown Holdings, Inc. has been fluctuating over the past five years, indicating changes in the company's capital structure and financial leverage.
In 2019, the debt-to-equity ratio was at its highest at 4.65, suggesting a higher proportion of debt relative to equity in the company's capital structure. This could indicate a higher financial risk and reliance on debt financing during that period.
Subsequently, there was a decline in the ratio in 2020 to 3.74, followed by a further decrease in 2021 to 3.28. These reductions may indicate efforts by the company to lower its debt levels or increase its equity base, potentially improving its financial stability.
However, in 2022, the ratio increased to 3.78, signifying a higher level of debt relative to equity compared to the previous year. This upturn could be a result of increased borrowing or a decrease in equity during that period.
Finally, in 2023, the ratio decreased to 3.10, indicating a lower level of debt relative to equity compared to the preceding year. This could suggest that the company either reduced its debt levels or increased its equity, potentially strengthening its financial position.
Overall, fluctuations in Crown Holdings, Inc.'s debt-to-equity ratio suggest varying degrees of financial risk and leverage over the years, highlighting the importance of analyzing the company's capital structure and funding sources in assessing its financial health and stability.
Peer comparison
Dec 31, 2023