CSX Corporation (CSX)
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 | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 12,133,000 | 12,625,000 | 13,500,000 | 13,110,000 | 11,863,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $12,133,000K
= 0.00
The debt-to-equity ratio of CSX Corp. has been fluctuating over the past five years. The company's leverage has increased from 1.37 in 2019 to 1.53 in 2023, indicating a higher reliance on debt financing compared to equity. This rising trend suggests that CSX Corp. has been taking on more debt relative to its equity over the years.
While a higher debt-to-equity ratio can signify potential financial risk due to increased debt obligations, it can also indicate that the company is utilizing debt to finance its growth or capital expenditures. It's important to assess the reasons behind the changes in the ratio to determine if the increase is a strategic decision or a cause for concern.
In 2021, the ratio decreased to 1.21 before rising again in the subsequent years. This fluctuation may imply varying financial strategies or external economic conditions impacting the company's financing decisions. It would be essential to delve deeper into CSX Corp.'s financial statements and overall business operations to gain a comprehensive understanding of the factors influencing its debt-to-equity ratio dynamics.
Peer comparison
Dec 31, 2023