Dow Inc (DOW)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | 13,875,000 | 17,125,000 | 20,604,000 |
| Total stockholders’ equity | US$ in thousands | 17,355,000 | 18,607,000 | 20,718,000 | 18,165,000 | 12,435,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.67 | 0.94 | 1.66 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $17,355,000K
= 0.00
Based on the provided data, Dow Inc's debt-to-equity ratio has shown a significant decrease over the years.
As of December 31, 2020, the ratio was 1.66, indicating that the company had higher levels of debt relative to its equity. However, by December 31, 2021, the ratio had decreased to 0.94, suggesting that Dow Inc had reduced its debt levels in relation to its equity.
Further improvements were observed in the subsequent years, with the ratio declining to 0.67 by December 31, 2022. Notably, the debt-to-equity ratio dropped to 0.00 by December 31, 2023, and remained at 0.00 in the following year, indicating that the company had completely eliminated its debt or had a minimal amount of debt compared to equity during those periods.
Overall, the trend in Dow Inc's debt-to-equity ratio reflects a positive shift towards a more conservative capital structure with lower debt levels relative to equity, which can be seen as a favorable indicator of financial health and stability.
Peer comparison
Dec 31, 2024