Corteva Inc (CTVA)
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 | 2,434,000 | 1,172,000 | 1,120,000 | 1,166,000 | 114,000 |
| Total stockholders’ equity | US$ in thousands | 25,037,000 | 25,302,000 | 25,384,000 | 24,824,000 | 24,309,000 |
| Debt-to-equity ratio | 0.10 | 0.05 | 0.04 | 0.05 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,434,000K ÷ $25,037,000K
= 0.10
The debt-to-equity ratio of Corteva Inc has gradually increased over the past five years, indicating a higher reliance on debt financing relative to equity. The ratio stood at 0.01 in 2019, showing a considerable jump to 0.10 by the end of 2023. This trend suggests that Corteva has been taking on more debt in relation to its equity over the years. While a higher debt-to-equity ratio can amplify returns on equity when business is booming, it also exposes the company to increased financial risk, especially in times of economic downturns or unfavorable market conditions. It would be crucial for Corteva to carefully manage its debt levels to maintain a healthy balance between debt and equity and ensure long-term financial stability.
Peer comparison
Dec 31, 2023