Eastman Chemical Company (EMN)
Debt-to-assets ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,305,000 | 4,580,000 | 4,593,000 | 4,636,000 | 4,025,000 | 3,979,000 | 4,012,000 | 4,379,000 | 4,412,000 | 4,442,000 | 5,223,000 | 5,200,000 | 5,269,000 | 5,495,000 | 5,431,000 | 5,399,000 | 5,611,000 | 5,567,000 | 5,624,000 | 5,602,000 |
| Total assets | US$ in thousands | 14,633,000 | 14,594,000 | 14,771,000 | 14,983,000 | 14,667,000 | 14,985,000 | 14,875,000 | 15,806,000 | 15,519,000 | 16,259,000 | 16,098,000 | 16,195,000 | 16,083,000 | 16,009,000 | 15,973,000 | 16,465,000 | 16,008,000 | 16,137,000 | 16,256,000 | 16,361,000 |
| Debt-to-assets ratio | 0.29 | 0.31 | 0.31 | 0.31 | 0.27 | 0.27 | 0.27 | 0.28 | 0.28 | 0.27 | 0.32 | 0.32 | 0.33 | 0.34 | 0.34 | 0.33 | 0.35 | 0.34 | 0.35 | 0.34 |
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 eight quarters, ranging from 0.33 to 0.38. This ratio measures the proportion of the company's assets financed by debt, with a higher ratio indicating a higher degree of leverage.
The trend shows that Eastman Chemical Co has maintained a conservative approach to debt financing, as the ratio has mostly hovered around the mid-0.30s range. This suggests that the company has a strong asset base to support its debt obligations, as a lower ratio indicates a higher proportion of assets funded by equity.
The slight increase in the ratio from Q4 2022 to Q1 2023 could indicate a slight increase in debt relative to assets during that period. However, the ratio has remained relatively stable since then. It is important for investors to monitor this ratio over time to assess the company's ability to manage debt and its overall financial health.
Peer comparison
Dec 31, 2023