CNH Industrial N.V. (CNH)
Debt-to-assets ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 23,749,000 | 24,512,000 | 23,805,000 | 26,053,000 | 24,670,000 | 24,449,000 | 23,518,000 |
| Total assets | US$ in thousands | 42,933,000 | 44,033,000 | 43,959,000 | 45,726,000 | 46,351,000 | 43,041,000 | 42,687,000 | 40,566,000 | 39,381,000 | 35,844,000 | 35,648,000 | 36,485,000 | 49,416,000 | 47,693,000 | 49,222,000 | 46,705,000 | 48,719,000 | 45,069,000 | 45,019,000 | 43,913,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.50 | 0.50 | 0.51 | 0.53 | 0.55 | 0.54 | 0.54 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $42,933,000K
= 0.00
The debt-to-assets ratio of CNH Industrial N.V. has shown a stable trend over the analyzed period, ranging between 0.50 and 0.55. This ratio indicates the proportion of the company's total assets that are financed by debt. A decrease in the debt-to-assets ratio implies a lower reliance on debt to fund operations and investments, which can be viewed positively as it indicates a stronger financial position and potentially lower financial risk.
Notably, the ratio dropped to 0.00 starting from December 31, 2021, and remained at this level throughout the following quarters up to December 31, 2024. A debt-to-assets ratio of 0.00 suggests that the company has no debt compared to its total assets during this period. This could indicate either a deliberate strategy to reduce debt or a significant increase in assets without a corresponding increase in debt.
Overall, a low debt-to-assets ratio can be favorable from a risk management perspective, signaling a more conservative capital structure. However, it is also important to consider the context of the industry, market conditions, and the company's growth plans when evaluating the implications of this ratio.
Peer comparison
Dec 31, 2024