FMC Corporation (FMC)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,023,600 | 2,733,200 | 2,731,700 | 2,929,500 | 3,031,100 |
| Total assets | US$ in thousands | 11,926,200 | 11,171,300 | 10,673,100 | 10,186,400 | 9,872,700 |
| Debt-to-assets ratio | 0.25 | 0.24 | 0.26 | 0.29 | 0.31 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,023,600K ÷ $11,926,200K
= 0.25
The debt-to-assets ratio of FMC Corp. has fluctuated over the past five years, ranging from 0.29 to 0.33. This ratio measures the proportion of a company's assets financed by debt. A lower ratio indicates that a company relies less on debt to fund its operations and investments.
In 2023, the debt-to-assets ratio increased to 0.33 from 0.29 in 2022, suggesting that FMC Corp. relied more on debt financing relative to its total assets. This increase may indicate a shift in the company's capital structure towards more debt. However, a ratio of 0.33 still indicates that a significant portion of FMC Corp.'s assets is financed by equity.
Comparing the 2023 ratio to the ratios in the previous years, we can observe that it is in line with the ratio of 0.33 in 2019, but slightly higher than the ratios of 0.30 and 0.32 in 2021 and 2020, respectively. This trend indicates that while there have been fluctuations, FMC Corp. has generally maintained a moderate level of debt relative to its assets over the years.
Overall, the debt-to-assets ratio of FMC Corp. in 2023 suggests a moderate reliance on debt financing, with room for further analysis to understand the company's capital structure decisions and financial health.
Peer comparison
Dec 31, 2023