Fortrea Holdings Inc. (FTRE)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||
|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,565,900 | 1,572,400 | 1,578,900 |
| Total stockholders’ equity | US$ in thousands | 1,738,800 | 1,694,300 | 1,751,100 |
| Debt-to-capital ratio | 0.47 | 0.48 | 0.47 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,565,900K ÷ ($1,565,900K + $1,738,800K)
= 0.47
The debt-to-capital ratio for Fortrea Holdings Inc. remained relatively stable throughout the year 2023, ranging from 0.47 to 0.48. This ratio measures the proportion of the company's capital that is financed by debt, indicating the extent of financial leverage used by the company. A ratio of 0.47 to 0.48 suggests that approximately 47% to 48% of Fortrea Holdings' capital structure is funded by debt.
This consistency in the debt-to-capital ratio indicates that the company's debt levels relative to its total capital have been relatively stable over the three quarters analyzed. A stable debt-to-capital ratio can signify a consistent financing strategy and may indicate a lower risk of financial distress due to excessive debt. However, further analysis of the trend over a longer period and in comparison to industry benchmarks would provide a more comprehensive assessment of Fortrea Holdings' debt management strategy and financial health.
Peer comparison
Dec 31, 2023