Fortune Brands Innovations Inc. (FBIN)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,173,700 | 2,670,100 | 2,074,300 | 2,309,800 | 2,572,200 |
| Total assets | US$ in thousands | 6,561,800 | 6,565,000 | 6,120,900 | 7,936,200 | 7,358,700 |
| Debt-to-assets ratio | 0.33 | 0.41 | 0.34 | 0.29 | 0.35 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,173,700K ÷ $6,561,800K
= 0.33
The debt-to-assets ratio for Fortune Brands Innovations Inc. has exhibited some fluctuation over the past five years. As of December 31, 2020, the ratio stood at 0.35, indicating that 35% of the company's assets were financed through debt. By December 31, 2021, the ratio had decreased to 0.29, suggesting a more conservative debt financing strategy with 29% of assets funded by debt.
However, the ratio saw a slight increase to 0.34 by December 31, 2022, before rising more significantly to 0.41 by December 31, 2023. This uptick may raise concerns about the company's increasing reliance on debt to fund its assets. It would be important to assess the reasons behind this change and evaluate the potential implications on the company's financial health and risk profile.
Fortunately, by December 31, 2024, the debt-to-assets ratio had decreased to 0.33, indicating a slight improvement in the company's debt management. Overall, the trend of the debt-to-assets ratio for Fortune Brands Innovations Inc. suggests a degree of variability in the company's financing structure over the years, with closer attention warranted to monitor the company's leverage and financial stability moving forward.
Peer comparison
Dec 31, 2024