FMC Corporation (FMC)
Debt-to-assets 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 | 3,023,600 | 3,022,900 | 3,022,000 | 2,334,000 | 2,733,200 | 2,732,500 | 2,731,700 | 2,732,400 | 2,731,700 | 2,631,700 | 2,630,800 | 2,631,400 | 2,929,500 | 3,028,300 | 3,027,500 | 3,531,800 | 3,031,100 | 3,032,400 | 2,144,300 | 2,145,000 |
| Total assets | US$ in thousands | 11,926,200 | 10,956,400 | 11,951,700 | 11,732,100 | 11,171,300 | 10,764,700 | 11,044,200 | 10,904,800 | 10,673,100 | 10,410,200 | 10,942,100 | 10,423,300 | 10,186,400 | 9,772,200 | 9,993,700 | 10,189,200 | 9,872,700 | 9,803,800 | 9,824,500 | 9,946,000 |
| Debt-to-assets ratio | 0.25 | 0.28 | 0.25 | 0.20 | 0.24 | 0.25 | 0.25 | 0.25 | 0.26 | 0.25 | 0.24 | 0.25 | 0.29 | 0.31 | 0.30 | 0.35 | 0.31 | 0.31 | 0.22 | 0.22 |
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 shown some fluctuation over the past eight quarters. Generally, a lower debt-to-assets ratio indicates a lower level of financial risk and greater financial stability. In Q4 2022, the ratio was at its lowest point for the period at 0.29, suggesting a relatively conservative approach to financing the company's assets.
However, in the subsequent quarters, the ratio increased, reaching its peak in Q2 2023 at 0.39. This upward trend indicates a higher reliance on debt to finance the company's assets, which can pose greater financial risk, especially during economic downturns or turbulent market conditions.
It is important for investors and stakeholders to monitor this trend closely to assess FMC Corp.'s ability to manage its debt levels effectively and maintain financial flexibility. The company may need to consider optimizing its capital structure to strike a balance between debt and equity financing to ensure long-term sustainability and growth.
Peer comparison
Dec 31, 2023