CF Industries Holdings Inc (CF)
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 | 2,968,000 | 2,965,000 | 3,465,000 | 3,712,000 | 3,957,000 |
| Total stockholders’ equity | US$ in thousands | 5,717,000 | 5,051,000 | 3,206,000 | 2,922,000 | 2,897,000 |
| Debt-to-capital ratio | 0.34 | 0.37 | 0.52 | 0.56 | 0.58 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,968,000K ÷ ($2,968,000K + $5,717,000K)
= 0.34
The debt-to-capital ratio of CF Industries Holdings Inc has shown a decreasing trend over the past five years, declining from 0.58 in 2019 to 0.34 in 2023. This indicates that the company has been relying less on debt to finance its operations and investments relative to its total capital structure. A lower debt-to-capital ratio suggests a stronger financial position and less financial risk for the company. It is worth noting that the ratio decreased significantly from 2021 to 2022, possibly as a result of debt reduction strategies or improved profitability. Overall, the decreasing trend in the debt-to-capital ratio reflects a positive financial management approach by CF Industries Holdings Inc.
Peer comparison
Dec 31, 2023