Fortune Brands Innovations Inc. (FBIN)
Debt-to-equity 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-equity ratio | 1.16 | 0.99 | 0.75 | 0.93 | 0.74 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,670,100K ÷ $2,293,400K
= 1.16
The debt-to-equity ratio of Fortune Brands Innovations Inc. has fluctuated over the past five years, indicating varying levels of leverage utilized by the company.
In 2019, the ratio stood at 0.74, indicating a lower level of debt relative to equity. This suggests a conservative approach to funding operations and growth.
However, in 2020, the ratio increased to 0.93, suggesting a higher reliance on debt financing compared to the previous year. This may have been due to strategic decisions to take on more debt for expansion or investment purposes.
By 2021, the ratio further increased to 0.75, indicating a reduction in the level of debt relative to equity. This could represent efforts to deleverage and strengthen the company's financial position.
In 2022, the ratio increased again to 0.99, indicating a reversal in the deleveraging trend observed in the previous year. This may signal a shift towards higher debt levels or a decrease in equity.
Finally, in 2023, the debt-to-equity ratio rose to 1.16, reaching the highest level in the five-year period. This uptick suggests a significant increase in debt relative to equity, which may raise concerns about the company's financial risk and ability to service its obligations.
Overall, the fluctuation in Fortune Brands Innovations Inc.'s debt-to-equity ratio reflects changing financial strategies and capital structure decisions, highlighting the need for ongoing monitoring and analysis of the company's leverage levels.
Peer comparison
Dec 31, 2023