FMC Corporation (FMC)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 4,410,900 | 3,290,900 | 3,353,000 | 3,470,700 | 3,377,900 | 3,188,200 | 3,108,500 | 3,059,100 | 3,124,300 | 3,031,400 | 3,110,700 | 3,008,600 | 2,961,800 | 2,944,500 | 2,822,200 | 2,675,400 | 2,532,300 | 2,649,200 | 2,763,600 | 2,761,000 |
| Debt-to-equity ratio | 0.69 | 0.92 | 0.90 | 0.67 | 0.81 | 0.86 | 0.88 | 0.89 | 0.87 | 0.87 | 0.85 | 0.87 | 0.99 | 1.03 | 1.07 | 1.32 | 1.20 | 1.14 | 0.78 | 0.78 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,023,600K ÷ $4,410,900K
= 0.69
The debt-to-equity ratio of FMC Corp. has exhibited fluctuations over the past eight quarters, ranging from a low of 0.90 in Q4 2023 to a high of 1.40 in Q2 2023. This ratio compares the company's total debt to its shareholders' equity, reflecting the proportion of financing provided by creditors versus shareholders. A higher ratio signifies a greater reliance on debt for funding, potentially indicating higher financial risk.
The increasing trend observed from Q4 2022 to Q2 2023, peaking at 1.40, suggests a rising level of debt relative to equity during that period. However, the subsequent decline in Q3 and Q4 2023 may indicate a shift towards a more balanced capital structure or efforts to reduce debt levels.
Overall, FMC Corp. should continue monitoring its debt-to-equity ratio to ensure it maintains a sustainable level of leverage that supports both operational needs and financial stability.
Peer comparison
Dec 31, 2023