Crown Holdings Inc (CCK)
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 | 6,699,000 | 6,240,000 | 6,986,000 | 7,046,000 | 6,792,000 | 6,709,000 | 5,466,000 | 5,654,000 | 6,052,000 | 6,034,000 | 7,879,000 | 7,875,000 | 8,023,000 | 8,039,000 | 7,999,000 | 8,631,000 | 7,818,000 | 8,042,000 | 8,549,000 | 8,814,000 |
| Total stockholders’ equity | US$ in thousands | 2,410,000 | 2,341,000 | 2,235,000 | 2,030,000 | 1,849,000 | 1,666,000 | 1,739,000 | 1,820,000 | 1,912,000 | 2,444,000 | 2,262,000 | 2,377,000 | 2,198,000 | 1,909,000 | 1,815,000 | 1,664,000 | 1,713,000 | 1,619,000 | 1,294,000 | 1,134,000 |
| Debt-to-equity ratio | 2.78 | 2.67 | 3.13 | 3.47 | 3.67 | 4.03 | 3.14 | 3.11 | 3.17 | 2.47 | 3.48 | 3.31 | 3.65 | 4.21 | 4.41 | 5.19 | 4.56 | 4.97 | 6.61 | 7.77 |
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 exhibited fluctuations over the past eight quarters. The trend shows a gradual decrease from Q4 2022 (3.78) to Q3 2023 (3.02), followed by a slight increase in Q4 2023 (3.10). Overall, the company's debt-to-equity ratio remains relatively high, indicating a significant reliance on debt financing compared to equity.
The peak ratio of 4.13 in Q3 2022 may suggest increased leverage during that period, which was subsequently reduced in the following quarters. The ratio of 3.61 in Q1 2023 and 3.24 in Q2 2023 also indicate efforts to manage debt levels.
While the recent fluctuations in the debt-to-equity ratio show some instability, it is essential for Crown Holdings, Inc. to monitor and optimize its capital structure to maintain financial stability and sustainable growth in the long term.
Peer comparison
Dec 31, 2023