Eastman Chemical Company (EMN)
Debt-to-equity 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-equity ratio | 0.79 | 0.78 | 0.77 | 0.87 | 0.94 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,305,000K ÷ $5,458,000K
= 0.79
The debt-to-equity ratio of Eastman Chemical Co has shown a decreasing trend over the past five years, from 0.97 in 2019 to 0.89 in 2023. This indicates that the company has been relying less on debt financing relative to its equity position, which could be viewed positively by investors and creditors.
In 2022, the ratio increased to 1.00, which may have raised some concerns about the company's leverage. However, it quickly decreased in the following year, indicating a potential strategic effort to reduce debt levels.
Overall, the downward trend in the debt-to-equity ratio suggests that Eastman Chemical Co has been gradually improving its financial structure by managing its debt levels and maintaining a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2023