Crane NXT Co (CXT)
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 | 469,500 | 543,700 | 842,400 | 842,900 | 842,000 |
| Total stockholders’ equity | US$ in thousands | 964,000 | 783,800 | 763,800 | 1,528,900 | 1,473,700 |
| Debt-to-equity ratio | 0.49 | 0.69 | 1.10 | 0.55 | 0.57 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $469,500K ÷ $964,000K
= 0.49
The debt-to-equity ratio of Crane NXT Co has fluctuated over the past five years, indicating changes in the company's capital structure and financial leverage.
In 2023, the debt-to-equity ratio decreased to 0.49, indicating that the company relied less on debt financing relative to equity compared to the previous year. This could suggest improved financial stability and a lower overall financial risk.
In 2022, the ratio was 0.69, showing a higher proportion of debt in the company's capital structure compared to equity. This may indicate increased financial leverage and a heightened risk level.
The ratio was the highest in 2021 at 1.10, indicating a significant reliance on debt to fund the company's operations and growth. This high ratio could potentially signal increased financial risk and a need for careful management of debt obligations.
In 2020, the ratio decreased to 0.55, suggesting a lower reliance on debt financing compared to the previous year. This shift could indicate a more balanced capital structure and decreased financial risk.
In 2019, the ratio was 0.57, showing a similar level of debt relative to equity as in 2020. This consistency in the ratio over two consecutive years may indicate stability in the company's capital structure.
Overall, the fluctuation in Crane NXT Co's debt-to-equity ratio over the years highlights the company's varying approach to financing its operations and investments, with implications for its financial risk profile and potential for growth.
Peer comparison
Dec 31, 2023