FMC Corporation (FMC)
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 | 3,023,600 | 2,733,200 | 2,731,700 | 2,929,500 | 3,031,100 |
| Total stockholders’ equity | US$ in thousands | 4,410,900 | 3,377,900 | 3,124,300 | 2,961,800 | 2,532,300 |
| Debt-to-capital ratio | 0.41 | 0.45 | 0.47 | 0.50 | 0.54 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,023,600K ÷ ($3,023,600K + $4,410,900K)
= 0.41
The debt-to-capital ratio of FMC Corp has shown a declining trend over the past five years, decreasing from 0.56 in 2019 to 0.47 in 2023. This indicates that the company has been successfully reducing its reliance on debt to finance its operations and investments relative to its total capital. A lower debt-to-capital ratio suggests a stronger financial position and lower financial risk for the company, as it signifies a higher proportion of capital being financed through equity rather than debt. This trend may be indicative of improved financial stability and potentially better creditworthiness for FMC Corp. It is worth monitoring this ratio in the future to ensure that the company maintains a prudent balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2023