Church & Dwight Company Inc (CHD)
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 | 2,202,200 | 2,599,500 | 1,610,700 | 1,812,500 | 1,810,200 |
| Total stockholders’ equity | US$ in thousands | 3,855,400 | 3,489,900 | 3,233,200 | 3,020,400 | 2,667,800 |
| Debt-to-equity ratio | 0.57 | 0.74 | 0.50 | 0.60 | 0.68 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,202,200K ÷ $3,855,400K
= 0.57
The debt-to-equity ratio of Church & Dwight Co., Inc. has shown a fluctuating trend over the past five years. In 2023, the ratio decreased to 0.62 from 0.77 in the previous year, indicating a lower dependency on debt financing relative to shareholder equity. This reduction suggests that the company may have reduced its debt levels or increased equity through retained earnings or equity investments.
Looking back over the prior years, the ratio was at its highest in 2021 at 0.79 before decreasing in 2022 and 2023. Despite the fluctuations, the company has maintained a generally moderate level of debt relative to equity, with the ratio ranging between 0.62 and 0.79. This suggests that Church & Dwight Co., Inc. has been managing its capital structure effectively, balancing debt and equity to support its operations and growth initiatives.
Overall, the decreasing trend in the debt-to-equity ratio in 2023 reflects positively on the company's financial health and leverage position. Investors and creditors may view this as a sign of stability and prudent financial management by the company. However, it is essential to consider other financial metrics and factors in conjunction with the debt-to-equity ratio to gain a comprehensive understanding of Church & Dwight Co., Inc.'s financial performance and risk profile.
Peer comparison
Dec 31, 2023