Frontier Communications Parent Inc (FYBR)

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 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 Dec 31, 2018
Long-term debt US$ in thousands 11,246,000 11,258,000 9,829,000 9,839,000 9,110,000 9,120,000 9,130,000 7,957,000 7,968,000 — 10,949,000 10,949,000 10,949,000 10,949,000 17,511,000 16,308,000 16,305,000 16,357,000 16,526,000 16,358,000
Total stockholders’ equity US$ in thousands 5,279,000 5,240,000 5,192,000 5,163,000 5,134,000 4,933,000 4,796,000 4,678,000 4,600,000 4,248,000 -4,830,000 -4,900,000 -4,926,000 -5,097,000 -4,493,000 -4,394,000 -4,103,000 -3,771,000 1,535,000 1,600,000
Debt-to-equity ratio 2.13 2.15 1.89 1.91 1.77 1.85 1.90 1.70 1.73 0.00 — — — — — — — — 10.77 10.22

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $11,246,000K ÷ $5,279,000K
= 2.13

The debt-to-equity ratio of Frontier Communications Parent Inc has fluctuated over the past years, indicating variations in its capital structure and leverage. The ratio was relatively stable around 1.7 to 1.9 from March 2020 to June 2022, suggesting a balanced mix of debt and equity financing during this period.

However, an abrupt increase in the ratio was observed in December 2022, reaching 2.13, which continued to rise to 2.15 by September 2023. These higher ratios indicate a higher level of debt relative to equity, signaling increased financial risk and potential difficulties in servicing debt obligations.

Of particular note is the significant spike in the debt-to-equity ratio to 10.77 in June 2021 and 10.22 in March 2021, indicating an unusually high level of debt compared to equity during that period. The sudden change in the capital structure to a highly leveraged position may raise concerns about the company's financial sustainability and ability to manage its debt effectively.

In conclusion, the fluctuating debt-to-equity ratios of Frontier Communications Parent Inc reflect varying levels of financial leverage over time, with recent increases suggesting a potential shift towards a more debt-heavy capital structure. These trends underscore the importance of closely monitoring the company's debt levels and overall financial health.