Crane Company (CR)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 248,500 | 250,300 | 262,300 | — |
| Total stockholders’ equity | US$ in thousands | 1,357,800 | 1,284,100 | 1,235,200 | 1,560,400 |
| Debt-to-equity ratio | 0.18 | 0.19 | 0.21 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $248,500K ÷ $1,357,800K
= 0.18
The debt-to-equity ratio of Crane Company has been relatively stable over the past four quarters, starting at 0.00 in March 2023 and gradually increasing to 0.21 in June 2023, before slightly decreasing to 0.19 in September 2023 and then further to 0.18 by December 2023.
A debt-to-equity ratio of 0.18 indicates that for every $1 of equity, Crane Company has $0.18 in debt. This implies that the company is relying more on equity financing rather than debt to fund its operations and growth. However, the increase in the ratio from 0.00 to 0.21 in just three months between March and June 2023 may signal a significant change in the company's capital structure or debt levels during that period.
It is important for Crane Company to continue monitoring its debt-to-equity ratio to ensure a healthy balance between debt and equity financing. A decreasing trend observed towards the end of the year could indicate a positive direction in managing the company's financial leverage.
Peer comparison
Dec 31, 2023