Corteva Inc (CTVA)

Debt-to-equity ratio

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Long-term debt US$ in thousands 2,434,000 2,320,000 2,368,000 1,198,000 1,172,000 1,154,000 1,188,000 1,107,000 1,120,000 1,134,000 1,139,000 1,121,000 1,166,000 1,164,000 1,141,000 612,000 114,000 123,000 119,000 6,830,000
Total stockholders’ equity US$ in thousands 25,037,000 25,226,000 26,220,000 25,599,000 25,302,000 24,844,000 25,831,000 25,696,000 25,384,000 24,740,000 25,385,000 24,538,000 24,824,000 24,106,000 24,561,000 23,825,000 24,309,000 25,015,000 25,810,000 74,571,000
Debt-to-equity ratio 0.10 0.09 0.09 0.05 0.05 0.05 0.05 0.04 0.04 0.05 0.04 0.05 0.05 0.05 0.05 0.03 0.00 0.00 0.00 0.09

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 shown fluctuations over the past eight quarters. At the end of Q4 2023, the ratio stands at 0.10, indicating that the company's debt level relative to its shareholders' equity is relatively low. This suggests that Corteva has a stronger equity position compared to its debt obligations, which can be seen as a positive indicator of financial stability.

Looking back at the trend, there was a significant increase in the debt-to-equity ratio in Q3 2023, reaching 0.23. This rise may have been a cause for concern as it indicated a higher reliance on debt financing compared to equity. However, the ratio decreased in subsequent quarters, stabilizing around 0.20 in Q2 and Q1 2023, which still reflects a moderate level of leverage.

Comparing the latest ratio to the same quarter in the previous year, there has been an increase from 0.05 in Q4 2022 to 0.10 in Q4 2023. While the current ratio is higher, suggesting a slightly higher debt burden compared to the prior year, it remains at a reasonable level indicating that Corteva has not significantly increased its leverage.

Overall, the debt-to-equity ratio of Corteva Inc has demonstrated some variability but has generally remained within acceptable limits over the past eight quarters, with the latest figure of 0.10 signaling a healthy balance between debt and equity in the company's capital structure.


Peer comparison

Dec 31, 2023

Company name
Symbol
Debt-to-equity ratio
Corteva Inc
CTVA
0.10
Fresh Del Monte Produce Inc
FDP
0.00