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.