CNH Industrial N.V. (CNH)
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 | 27,326,000 | 22,962,000 | 21,091,000 | 26,053,000 | 24,854,000 |
| Total stockholders’ equity | US$ in thousands | 8,234,000 | 6,976,000 | 6,853,000 | 5,029,000 | 6,156,000 |
| Debt-to-capital ratio | 0.77 | 0.77 | 0.75 | 0.84 | 0.80 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $27,326,000K ÷ ($27,326,000K + $8,234,000K)
= 0.77
The debt-to-capital ratio of CNH Industrial N.V. has exhibited some fluctuations over the past five years. In 2023 and 2022, the ratio remained stable at 0.77, indicating that 77% of the company's capital structure was financed by debt, while the remaining 23% was funded by equity. In 2021, there was a slight decrease to 0.75, suggesting a slightly lower reliance on debt compared to the previous years.
The ratio increased to 0.84 in 2020, indicating a higher debt component in the capital structure compared to the preceding years. However, in 2019, the ratio decreased to 0.80, showing a slight reduction in the debt proportion within the capital structure compared to 2020.
Overall, the trend in the debt-to-capital ratio of CNH Industrial N.V. demonstrates some variability over the years, highlighting the company's changing reliance on debt financing to support its operations and investments. It is essential to monitor this ratio closely as it provides insights into the company's leverage and financial risk management strategies.
Peer comparison
Dec 31, 2023