Eastman Chemical Company (EMN)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 5,458,000 | 5,153,000 | 5,704,000 | 6,023,000 | 5,958,000 |
| Debt-to-capital ratio | 0.44 | 0.44 | 0.44 | 0.47 | 0.49 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,305,000K ÷ ($4,305,000K + $5,458,000K)
= 0.44
The debt-to-capital ratio of Eastman Chemical Co has shown a fluctuating trend over the past five years. In 2023, the ratio decreased to 0.47 from 0.50 in 2022, indicating a lower reliance on debt in the company's capital structure. This may suggest improved financial stability and a reduced level of financial risk. Comparing 2023 to 2021 and 2020 when the ratio was also at 0.47 and 0.48 respectively, there seems to be a certain level of consistency in the company's debt management practices. However, it is worth noting that the ratio has slowly decreased from 0.49 in 2019 to 0.47 in 2023, reflecting a gradual decrease in the proportion of debt relative to the company's total capital over the years. This trend could indicate a strategy to lower financial leverage and enhance the company's overall financial health. Overall, monitoring the debt-to-capital ratio over time can provide insights into Eastman Chemical Co's capital structure management and financial risk management strategies.
Peer comparison
Dec 31, 2023