Dana Inc (DAN)
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 | 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-equity ratio | 1.64 | 1.49 | 1.22 | 1.35 | 1.27 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,582,000K ÷ $1,575,000K
= 1.64
The debt-to-equity ratio of Dana Inc has fluctuated over the past five years. In 2023, the ratio increased to 1.69 from 1.55 in 2022, indicating that the company had a higher level of debt relative to equity at the end of 2023. This could imply increased leverage and financial risk.
Comparing to 2021, when the ratio was 1.26, the ratio has been on an upward trend since then. The ratio was 1.40 in 2020 and 1.27 in 2019. The higher the debt-to-equity ratio, the more the company is relying on debt financing as opposed to equity.
Overall, Dana Inc's increasing debt-to-equity ratio over the years suggests the company has been taking on more debt to finance its operations or growth. Investors and stakeholders should monitor this trend to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023