Eastman Chemical Company (EMN)
Debt-to-equity 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-equity ratio | 0.79 | 0.86 | 0.87 | 0.89 | 0.78 | 0.74 | 0.75 | 0.74 | 0.77 | 0.73 | 0.88 | 0.83 | 0.87 | 0.90 | 0.90 | 0.88 | 0.94 | 0.92 | 0.96 | 0.96 |
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 for Eastman Chemical Co has fluctuated over the past eight quarters, ranging from 0.89 to 1.09. A ratio above 1 indicates that the company has more debt than equity, while a ratio below 1 suggests the opposite.
In Q1 2022 and Q3 2022, the company had a ratio of 0.91 and 0.94 respectively, indicating a lower level of debt compared to equity. However, in subsequent quarters, the ratio increased, reaching a peak of 1.09 in Q1 2023, which may raise concerns about the company's leverage and financial risk.
Overall, the trend in the debt-to-equity ratio suggests that Eastman Chemical Co has been gradually increasing its debt relative to equity, which could potentially impact its financial stability and ability to meet its debt obligations in the future.
Peer comparison
Dec 31, 2023