Fortune Brands Innovations Inc. (FBIN)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,422,000 | 2,293,400 | 2,086,900 | 3,064,800 | 2,775,500 |
| Debt-to-capital ratio | 0.47 | 0.54 | 0.50 | 0.43 | 0.48 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,173,700K ÷ ($2,173,700K + $2,422,000K)
= 0.47
The debt-to-capital ratio for Fortune Brands Innovations Inc. has shown fluctuations over the past five years. As of December 31, 2020, the ratio stood at 0.48, indicating that 48% of the company's capital structure was funded by debt.
Subsequently, the ratio decreased to 0.43 by December 31, 2021, suggesting a decrease in the reliance on debt to finance the company's operations. However, by December 31, 2022, the ratio increased to 0.50, signaling an increase in the proportion of debt relative to the overall capital structure.
Continuing the trend, the debt-to-capital ratio rose further to 0.54 by December 31, 2023, reaching its highest point in the past five years. This may indicate a higher level of financial risk associated with the company's capital structure.
Finally, by December 31, 2024, the ratio declined to 0.47, showing a decrease in the reliance on debt compared to the previous year. Overall, the fluctuating trend in the debt-to-capital ratio suggests varying degrees of debt utilization by Fortune Brands Innovations Inc. over the analyzed period.
Peer comparison
Dec 31, 2024