Church & Dwight Company Inc (CHD)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,202,200 | 2,599,500 | 1,610,700 | 1,812,500 | 1,810,200 |
| Total assets | US$ in thousands | 8,569,200 | 8,345,600 | 7,996,500 | 7,414,500 | 6,657,400 |
| Debt-to-assets ratio | 0.26 | 0.31 | 0.20 | 0.24 | 0.27 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,202,200K ÷ $8,569,200K
= 0.26
Church & Dwight Co., Inc. has maintained a relatively conservative debt-to-assets ratio over the past five years, ranging from 0.28 to 0.32. This ratio indicates that, on average, approximately 28% to 32% of the company's assets are financed by debt, with the remaining funded by equity.
The decrease in the debt-to-assets ratio from 2022 to 2023 suggests that the company has reduced its reliance on debt financing compared to the previous year. This may imply a strengthening financial position and lower financial risk as the company is utilizing less debt to support its operations and growth.
Overall, the consistent and moderate debt-to-assets ratio of Church & Dwight Co., Inc. reflects a balanced capital structure, indicating a prudent approach to managing debt levels relative to its asset base.
Peer comparison
Dec 31, 2023