Fortune Brands Innovations Inc. (FBIN)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,670,100 | 2,074,300 | 2,309,800 | 2,572,200 | 1,784,600 |
| Total assets | US$ in thousands | 6,565,000 | 6,120,900 | 7,936,200 | 7,358,700 | 6,291,300 |
| Debt-to-assets ratio | 0.41 | 0.34 | 0.29 | 0.35 | 0.28 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,670,100K ÷ $6,565,000K
= 0.41
The debt-to-assets ratio for Fortune Brands Innovations Inc. has shown fluctuations over the past five years, ranging from 0.28 to 0.41. The ratio indicates the proportion of the company's total assets that are financed by debt.
In 2023, the debt-to-assets ratio increased to 0.41 from 0.34 in 2022, suggesting a higher reliance on debt to finance the company's assets. This increase may indicate that the company took on more debt during the year, potentially to fund growth opportunities or address financial needs.
Comparing 2023 to 2021, there was a significant increase from 0.29 to 0.41, indicating a more substantial shift towards debt financing relative to the previous year. This could imply a strategic decision to leverage debt as a source of capital, possibly to support business expansion or investments.
In 2020, the debt-to-assets ratio was 0.35, slightly higher than in 2019 when it was 0.28. This increase suggests a greater reliance on debt financing, albeit not as pronounced as observed in 2021 and 2023.
Overall, the trend in the debt-to-assets ratio for Fortune Brands Innovations Inc. indicates varying levels of debt utilization over the years, with recent years showing a higher proportion of assets being funded by debt. Further analysis of the company's financial position, cash flows, and growth strategies would be necessary to understand the reasons behind these fluctuations and assess the company's overall financial health.
Peer comparison
Dec 31, 2023