Dow Inc (DOW)
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 | — | 13,875,000 | 17,125,000 | 20,604,000 | 18,661,000 |
| Total stockholders’ equity | US$ in thousands | 18,607,000 | 20,718,000 | 18,165,000 | 12,435,000 | 13,541,000 |
| Debt-to-capital ratio | 0.00 | 0.40 | 0.49 | 0.62 | 0.58 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $18,607,000K)
= 0.00
The debt-to-capital ratio of Dow Inc has fluctuated over the past five years, ranging from 0.43 to 0.58. In 2023, the ratio increased to 0.45 from 0.43 in 2022. This indicates that the company's reliance on debt as a source of financing in relation to its total capital has marginally increased. It is important to note that a higher debt-to-capital ratio implies a greater portion of the company's capital is being funded by debt, which can increase financial risk. However, the 2023 ratio remains in line with the 2021 figure, showing some stability after a peak in 2020. This suggests that the company may have adjusted its financing strategy to maintain a relatively consistent level of debt in relation to total capital, potentially mitigating the associated risks.
Peer comparison
Dec 31, 2023