Fortune Brands Innovations Inc. (FBIN)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,670,100 | 2,829,300 | 2,668,500 | 2,074,900 | 2,074,300 | 2,786,900 | 3,357,900 | 3,367,900 | 2,309,800 | 2,629,100 | 2,608,300 | 2,682,800 | 2,572,200 | 2,086,500 | 2,245,900 | 2,035,200 | 1,784,600 | 1,949,000 | 1,666,000 | 2,169,700 |
| Total stockholders’ equity | US$ in thousands | 2,293,400 | 2,219,000 | 2,177,100 | 2,082,500 | 2,086,900 | 3,030,100 | 2,952,400 | 2,914,800 | 3,064,800 | 3,054,600 | 3,043,500 | 2,924,400 | 2,775,500 | 2,628,600 | 2,461,800 | 2,357,000 | 2,426,600 | 2,335,400 | 2,343,500 | 2,245,500 |
| Debt-to-equity ratio | 1.16 | 1.28 | 1.23 | 1.00 | 0.99 | 0.92 | 1.14 | 1.16 | 0.75 | 0.86 | 0.86 | 0.92 | 0.93 | 0.79 | 0.91 | 0.86 | 0.74 | 0.83 | 0.71 | 0.97 |
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 varied over the past five years, indicating fluctuations in the company's capital structure and financial leverage. The trend shows an increase in the debt-to-equity ratio from 2019 to 2023, with the ratio peaking at 1.28 in September 2023.
The ratio exceeding 1 suggests that the company relies more on debt financing than equity, indicating a higher level of financial risk. A higher debt-to-equity ratio means that the company may be more leveraged, which could result in higher interest expenses and increased financial vulnerability in times of economic downturns.
The trend of increasing debt-to-equity ratios may indicate that Fortune Brands Innovations Inc. has been taking on more debt to fund its operations or expansion initiatives. It is important for investors and stakeholders to monitor this trend closely to assess the company's ability to manage its debt levels and meet its financial obligations in the long term.
Peer comparison
Dec 31, 2023