CNH Industrial N.V. (CNH)
Debt-to-capital ratio
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 27,300,000 | 26,808,000 | 27,780,000 | 27,326,000 | 24,958,000 | 24,870,000 | 23,552,000 | 22,962,000 | 20,922,000 | 20,817,000 | 21,335,000 | 21,091,000 | 23,749,000 | 24,512,000 | 23,805,000 | 26,053,000 | 24,670,000 | 24,449,000 | 23,518,000 | 24,854,000 |
| Total stockholders’ equity | US$ in thousands | 7,769,000 | 7,662,000 | 8,012,000 | 8,234,000 | 8,115,000 | 7,630,000 | 7,451,000 | 6,976,000 | 6,409,000 | 5,843,000 | 5,656,000 | 6,853,000 | 6,292,000 | 6,074,000 | 5,506,000 | 5,029,000 | 4,840,000 | 5,963,000 | 5,658,000 | 6,156,000 |
| Debt-to-capital ratio | 0.78 | 0.78 | 0.78 | 0.77 | 0.75 | 0.77 | 0.76 | 0.77 | 0.77 | 0.78 | 0.79 | 0.75 | 0.79 | 0.80 | 0.81 | 0.84 | 0.84 | 0.80 | 0.81 | 0.80 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $27,300,000K ÷ ($27,300,000K + $7,769,000K)
= 0.78
The debt-to-capital ratio of CNH Industrial N.V. has exhibited some variability over the past few quarters, ranging from 0.75 to 0.84. The ratio provides insights into the company's long-term solvency and financial structure by comparing its total debt to its total capital (sum of debt and equity).
The trend of the debt-to-capital ratio indicates that the company has maintained a relatively stable level of indebtedness compared to its capital base. With ratios hovering around 0.77 to 0.79 in recent quarters, CNH Industrial N.V. appears to have a moderate level of debt relative to its capital, suggesting a balanced approach to financing its operations and growth.
However, the ratio reaching a high of 0.84 in December 2020 and September 2020 may raise some concerns as it indicates a higher reliance on debt to fund its operations during those periods. Investors and stakeholders should continue monitoring the company's debt levels and capital structure to ensure long-term financial stability and sustainability.
Peer comparison
Sep 30, 2024