Flowserve Corporation (FLS)
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 | 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-equity ratio | 0.60 | 0.67 | 0.70 | 0.99 | 0.78 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,167,310K ÷ $1,936,100K
= 0.60
The debt-to-equity ratio of Flowserve Corp. has shown a decreasing trend from 2019 to 2023. In 2020, the ratio was relatively high at 1.00, indicating that the company had an equal amount of debt and equity. However, from 2021 onwards, the ratio decreased steadily to 0.64 in 2023. This suggests that Flowserve Corp. has been reducing its reliance on debt financing and is moving towards a more equity-based capital structure. A lower debt-to-equity ratio may indicate improved financial stability and reduced financial risk for the company. Overall, the decreasing trend in the debt-to-equity ratio over the years showcases a positive shift in the company's capital structure.
Peer comparison
Dec 31, 2023