Flowserve Corporation (FLS)
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 | 1,167,310 | 1,224,150 | 1,261,770 | 1,717,910 | 1,365,980 |
| Total stockholders’ equity | US$ in thousands | 1,936,100 | 1,824,990 | 1,804,320 | 1,730,990 | 1,746,740 |
| Debt-to-capital ratio | 0.38 | 0.40 | 0.41 | 0.50 | 0.44 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,167,310K ÷ ($1,167,310K + $1,936,100K)
= 0.38
Flowserve Corp.'s debt-to-capital ratio has shown a fluctuating trend over the past five years. The ratio decreased from 0.50 in 2020 to 0.39 in 2023, indicating a positive change in the company's capital structure and reduced reliance on debt financing. This downward trend suggests an improvement in the company's ability to meet its financial obligations through a combination of debt and equity. However, it is important to note that the ratio was at its highest in 2021 at 0.42, indicating a slightly higher proportion of debt in the capital structure compared to other years in the period under review. Overall, a decreasing debt-to-capital ratio is generally considered a positive sign as it signifies a lower financial risk and greater financial stability for the company.
Peer comparison
Dec 31, 2023