Fortune Brands Innovations Inc. (FBIN)
Debt-to-equity 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-equity ratio | 0.90 | 1.16 | 0.99 | 0.75 | 0.93 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,173,700K ÷ $2,422,000K
= 0.90
The debt-to-equity ratio of Fortune Brands Innovations Inc. has displayed varying trends over the years as follows:
- As of December 31, 2020, the ratio stood at 0.93, indicating that the company had more debt relative to equity at that point in time.
- By December 31, 2021, the ratio decreased to 0.75, suggesting a reduction in the level of debt in comparison to equity.
- However, in the subsequent years, there was a gradual increase in the ratio. By December 31, 2022, the ratio climbed to 0.99, indicating a higher reliance on debt to finance the company's operations.
- This trend continued into December 31, 2023, with the ratio reaching 1.16, signaling a significant increase in debt relative to equity.
- Nonetheless, by December 31, 2024, the ratio decreased to 0.90, implying a moderation in the debt-to-equity ratio compared to the previous year.
Overall, the fluctuating trend in the debt-to-equity ratio of Fortune Brands Innovations Inc. suggests varying levels of financial leverage and indicates the company's changing capital structure over the years. Further analysis would be necessary to understand the underlying reasons driving these changes and evaluate the implications for the company's financial health and risk profile.
Peer comparison
Dec 31, 2024