Fortune Brands Innovations Inc. (FBIN)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,293,400 | 2,086,900 | 3,064,800 | 2,775,500 | 2,426,600 |
| Debt-to-capital ratio | 0.54 | 0.50 | 0.43 | 0.48 | 0.42 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,670,100K ÷ ($2,670,100K + $2,293,400K)
= 0.54
The debt-to-capital ratio of Fortune Brands Innovations Inc. has shown fluctuations over the past five years. The ratio has generally increased from 0.42 in 2019 to 0.54 in 2023, with variations in between. This indicates that the company has been utilizing more debt in its capital structure over the years compared to equity.
In 2021, the ratio was at its lowest point of 0.43, indicating a relatively lower reliance on debt compared to the other years. However, in 2023, the ratio increased to 0.54, signaling a higher proportion of debt in the company's capital structure compared to the previous years.
Overall, the increasing trend in the debt-to-capital ratio suggests that the company may be taking on more debt to finance its operations or growth opportunities. Investors and stakeholders may closely monitor this ratio to assess the company's risk of financial leverage and its ability to manage debt levels effectively.
Peer comparison
Dec 31, 2023