CNH Industrial N.V. (CNH)
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 | 27,326,000 | 22,962,000 | 21,091,000 | 26,053,000 | 24,854,000 |
| Total assets | US$ in thousands | 46,267,000 | 39,381,000 | 6,789,000 | 48,719,000 | 47,352,000 |
| Debt-to-assets ratio | 0.59 | 0.58 | 3.11 | 0.53 | 0.52 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $27,326,000K ÷ $46,267,000K
= 0.59
The debt-to-assets ratio of CNH Industrial N.V. has exhibited fluctuations over the past five years. In 2023, the ratio stands at 0.59, indicating that for every dollar of assets, the company has $0.59 of debt. This represents a slight increase from the previous year's ratio of 0.58.
A notable anomaly occurred in 2021 when the debt-to-assets ratio spiked to 3.11 before significantly decreasing in the subsequent years. This sharp increase in 2021 suggests a substantial rise in debt relative to assets, which could signify a period of increased borrowing or a decrease in asset base relative to debt levels.
Generally, a lower debt-to-assets ratio indicates a lower financial risk as it implies a smaller proportion of debt financing relative to total assets. CNH Industrial N.V.'s debt-to-assets ratio has remained relatively stable and within a reasonable range in recent years, apart from the outlier in 2021. Further analysis of the company's debt structure and asset composition would provide additional insights into its overall financial health and leverage position.
Peer comparison
Dec 31, 2023