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