CNH Industrial N.V. (CNH)
Debt-to-equity 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-equity ratio | 3.51 | 3.50 | 3.47 | 3.32 | 3.08 | 3.26 | 3.16 | 3.29 | 3.26 | 3.56 | 3.77 | 3.08 | 3.77 | 4.04 | 4.32 | 5.18 | 5.10 | 4.10 | 4.16 | 4.04 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $27,300,000K ÷ $7,769,000K
= 3.51
The debt-to-equity ratio of CNH Industrial N.V. has fluctuated over the past few quarters, indicating the company's capital structure and financial leverage. The ratio has ranged from 3.08 to 5.18 over the past eight quarters, with an upward trend observed in recent quarters.
A debt-to-equity ratio above 1 indicates that the company is primarily financed by debt, with a ratio of 3.08 to 5.18 suggesting that CNH Industrial N.V. carries a significant amount of debt in relation to its equity. Higher debt levels can increase financial risk and interest obligations, potentially impacting profitability and financial stability.
The recent increase in the ratio from around 3.00 to above 5.00 may signal an increase in the company's leverage and risk. It would be important for investors and stakeholders to monitor CNH Industrial N.V.'s ability to manage its debt levels and leverage effectively to ensure sustainable long-term financial health.
Peer comparison
Sep 30, 2024