CNH Industrial N.V. (CNH)
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 | 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-equity ratio | 3.32 | 3.29 | 3.08 | 5.18 | 4.04 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $27,326,000K ÷ $8,234,000K
= 3.32
The debt-to-equity ratio of CNH Industrial N.V. has displayed fluctuating trends over the past five years. The ratios for the years 2023 (3.32) and 2022 (3.29) indicate a continued high level of debt relative to equity. This suggests that the company relies significantly on debt financing to support its operations and growth.
Compared to the ratios in 2021 (3.08), 2020 (5.18), and 2019 (4.04), there appears to have been some improvement in 2023 and 2022. However, the ratios remain relatively high, signaling that CNH Industrial N.V. still carries a considerable amount of debt in relation to its equity.
It is important for investors and stakeholders to closely monitor the debt-to-equity ratio of CNH Industrial N.V. to assess the company's financial leverage and risk. High levels of debt relative to equity can indicate a higher risk of financial distress, as the company may face challenges in meeting its debt obligations. Further analysis of the company's debt structure and overall financial health is recommended to gain a more comprehensive understanding of its capital structure and risk profile.
Peer comparison
Dec 31, 2023