Dow Inc (DOW)
Debt-to-capital ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | 14,239,000 | 13,875,000 | 11,622,000 | 12,726,000 | 15,320,000 | 17,125,000 | 16,970,000 | 18,682,000 | 19,319,000 | 20,604,000 | 19,641,000 | 19,117,000 | 17,639,000 |
| Total stockholders’ equity | US$ in thousands | 17,355,000 | 18,311,000 | 18,318,000 | 18,425,000 | 18,607,000 | 19,567,000 | 19,997,000 | 20,181,000 | 20,718,000 | 18,117,000 | 18,973,000 | 18,880,000 | 18,165,000 | 16,439,000 | 15,573,000 | 14,003,000 | 12,435,000 | 12,354,000 | 12,537,000 | 12,906,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.41 | 0.40 | 0.39 | 0.40 | 0.45 | 0.49 | 0.51 | 0.55 | 0.58 | 0.62 | 0.61 | 0.60 | 0.58 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $17,355,000K)
= 0.00
The debt-to-capital ratio of Dow Inc has shown a decreasing trend from 0.58 in March 2020 to 0.40 in June 2022. This indicates that the company has been effectively managing its debt relative to its capital base during this period. However, in the subsequent quarters, the ratio remained relatively stable around 0.40, before decreasing further to 0.41 in March 2023.
Interestingly, the ratio dropped significantly to 0.00 starting from June 2023 and remained at this level until December 2024. A debt-to-capital ratio of 0.00 usually signifies that the company has no debt or a negligible amount of debt relative to its capital structure. This development may suggest that Dow Inc has either significantly reduced its debt levels or has shifted towards alternative forms of financing.
Overall, the decreasing trend in the debt-to-capital ratio up to June 2022 reflects positively on the company's ability to manage its debt effectively. The subsequent decrease to 0.00 indicates a potential shift in the company's capital structure, which could have implications for its financial stability and strategic direction.
Peer comparison
Dec 31, 2024