Eastman Chemical Company (EMN)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 5,458,000 | 5,352,000 | 5,281,000 | 5,188,000 | 5,153,000 | 5,384,000 | 5,323,000 | 5,893,000 | 5,704,000 | 6,120,000 | 5,944,000 | 6,233,000 | 6,023,000 | 6,075,000 | 6,021,000 | 6,117,000 | 5,958,000 | 6,020,000 | 5,869,000 | 5,843,000 |
| Debt-to-capital ratio | 0.44 | 0.46 | 0.47 | 0.47 | 0.44 | 0.42 | 0.43 | 0.43 | 0.44 | 0.42 | 0.47 | 0.45 | 0.47 | 0.47 | 0.47 | 0.47 | 0.49 | 0.48 | 0.49 | 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 some fluctuation over the past eight quarters, ranging from 0.47 to 0.52. The ratio indicates the proportion of the company's capital that is financed through debt.
The trend in the debt-to-capital ratio suggests that the company has been moderately leveraged, with the ratio hovering around 0.50 for the most part. A decreasing trend in the ratio could indicate a reduction in debt relative to total capital, which may be perceived positively by investors and creditors. Conversely, an increasing trend could signal a higher reliance on debt financing, which may increase the company's financial risk.
Overall, a ratio of around 0.50 indicates that Eastman Chemical Co has a balanced capital structure with a moderate level of debt compared to its total capital. Further analysis and consideration of the company's overall financial health and market conditions would be necessary to fully assess the implications of the debt-to-capital ratio.
Peer comparison
Dec 31, 2023