Eastman Chemical Company (EMN)

Debt-to-assets ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Long-term debt US$ in thousands 4,305,000 4,025,000 4,412,000 5,269,000 5,611,000
Total assets US$ in thousands 14,633,000 14,667,000 15,519,000 16,083,000 16,008,000
Debt-to-assets ratio 0.29 0.27 0.28 0.33 0.35

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,305,000K ÷ $14,633,000K
= 0.29

The debt-to-assets ratio of Eastman Chemical Co has been relatively stable over the past five years, ranging between 0.33 and 0.36. This ratio indicates the proportion of the company's assets that are financed by debt, with a lower ratio indicating less reliance on debt for financing its assets.

In 2023, the ratio decreased slightly to 0.33 from 0.35 in 2022, suggesting a lower level of debt financing compared to the previous year. This may indicate a more conservative approach towards capital structure or effective management of debt levels.

Overall, the trend in Eastman Chemical Co's debt-to-assets ratio demonstrates a generally prudent balance between debt and assets, which is important for maintaining financial stability and minimizing financial risk. However, it would be beneficial to delve deeper into the specific components of debt and assets to gain a comprehensive understanding of the company's overall financial health and leverage position.


Peer comparison

Dec 31, 2023