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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| 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 |
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