Dana Inc (DAN)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,333,000 | 1,575,000 | 1,551,000 | 1,922,000 | 1,758,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,333,000K)
= 0.00
The debt-to-capital ratio of Dana Inc remained constant at 0.00 for the years 2020 to 2024. This indicates that the company has not utilized debt as a significant source of its capital structure during this period. A low debt-to-capital ratio can reflect a conservative financial strategy that minimizes the company's financial risk and dependency on debt funding. It also suggests a strong ability to finance its operations and growth through retained earnings or equity financing. However, it's important to note that a very low debt-to-capital ratio may also indicate underutilization of debt as a cost-effective source of capital, potentially limiting the company's ability to take advantage of growth opportunities or tax benefits associated with debt financing.
Peer comparison
Dec 31, 2024