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.