Dow Inc (DOW)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.71 | 0.67 | 0.64 | 0.67 | 0.81 | 0.94 | 1.03 | 1.20 | 1.38 | 1.66 | 1.59 | 1.52 | 1.37 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $17,355,000K
= 0.00
The debt-to-equity ratio of Dow Inc has shown a declining trend over the period from March 31, 2020, to December 31, 2024. The ratio has decreased from 1.37 in March 2020 to 0.00 by June 2024. This indicates a significant reduction in the company's reliance on debt financing compared to equity financing over the years.
The decreasing trend in the debt-to-equity ratio suggests that Dow Inc has been effectively managing its debt levels and improving its financial position by reducing its debt burden relative to its equity. A lower debt-to-equity ratio is generally viewed favorably by investors and creditors as it signifies a lower financial risk and a healthier balance sheet.
The declining trend in the debt-to-equity ratio could be attributed to various factors, including prudent financial management, efficient utilization of resources, debt repayment, and improved profitability. Overall, the decreasing debt-to-equity ratio reflects positively on Dow Inc's financial health and sustainability.
Peer comparison
Dec 31, 2024