Frontier Communications Parent Inc (FYBR)

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	11,246,000	9,110,000	7,968,000	10,949,000	16,308,000
Total stockholders’ equity	US$ in thousands	5,279,000	5,134,000	4,600,000	-4,900,000	-4,394,000
Debt-to-capital ratio		0.68	0.64	0.63	1.81	1.37

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $11,246,000K ÷ ($11,246,000K + $5,279,000K)
= 0.68

Frontier Communications Parent Inc's debt-to-capital ratio has shown fluctuations over the past five years. In 2019, the ratio was relatively high at 1.37, indicating that a significant portion of the company's capital was financed through debt. However, in the following years, there was a downward trend, with the ratio decreasing to 0.63 in 2021 and further to 0.64 in 2022. This suggested a reduction in the company's reliance on debt financing in relation to its total capital.

However, there was a notable increase in the debt-to-capital ratio in 2020, jumping to 1.81. This sharp increase reflects a significant rise in debt relative to the capital structure, which could indicate a change in the company's financing strategy or financial difficulties during that period.

By 2023, the ratio had decreased to 0.68, still higher than the levels seen in 2021 and 2022 but lower than the peak in 2020. It is important to note that a high debt-to-capital ratio can indicate higher financial risk and leverage, while a lower ratio implies a more conservative capital structure. Overall, Frontier Communications Parent Inc should continue to monitor and manage its debt levels to maintain a healthy balance between debt and equity financing in its capital structure.