Dana Inc (DAN)

Debt-to-capital ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Long-term debt US$ in thousands 2,582,000 2,304,000 2,338,000 2,376,000 2,384,000
Total stockholders’ equity US$ in thousands 1,575,000 1,551,000 1,922,000 1,758,000 1,873,000
Debt-to-capital ratio 0.62 0.60 0.55 0.57 0.56

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,582,000K ÷ ($2,582,000K + $1,575,000K)
= 0.62

The debt-to-capital ratio of Dana Inc has shown a fluctuating trend over the past five years, ranging from 0.56 to 0.63. This ratio indicates the proportion of the company's capital structure that is financed through debt.

In 2023, the debt-to-capital ratio increased to 0.63 from 0.61 in 2022, suggesting a higher reliance on debt financing compared to the previous year. This could indicate increased borrowing activities or a decrease in capital contributions.

Comparing the 2023 ratio to that of 2021 and 2020, we observe a general upward trend in the debt-to-capital ratio. This trend may indicate a shift towards a more aggressive debt financing strategy or potential challenges in generating sufficient internal funds to support the company's operations and growth.

Despite the fluctuations, the debt-to-capital ratio of Dana Inc remains within a reasonable range, indicating a balanced mix of debt and equity in the company's capital structure. It is important for stakeholders to closely monitor this ratio to ensure the company maintains a healthy financial position and optimal capital structure.


Peer comparison

Dec 31, 2023