Chart Industries Inc (GTLS)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,576,400 | 2,039,800 | 600,800 | 221,600 | 761,000 |
| Total assets | US$ in thousands | 9,102,400 | 5,901,900 | 3,043,800 | 2,570,500 | 2,481,400 |
| Debt-to-assets ratio | 0.39 | 0.35 | 0.20 | 0.09 | 0.31 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,576,400K ÷ $9,102,400K
= 0.39
Chart Industries Inc's debt-to-assets ratio has shown fluctuations over the past five years. The ratio has exhibited an increasing trend from 0.31 in 2019 to 0.42 in 2023, with some variability in between.
A higher debt-to-assets ratio indicates that the company relies more on debt financing than on equity to fund its operations and investments. In Chart Industries Inc's case, the increase in the ratio over the years suggests a growing reliance on debt to support its assets.
The significant rise in the ratio from 0.17 in 2020 to 0.42 in 2023 is a notable change, indicating a substantial increase in the company's debt relative to its total assets over this period. This may have implications for the company's financial risk and solvency, as higher debt levels can increase interest payment obligations and financial vulnerability during economic downturns.
It is essential for investors and stakeholders to closely monitor changes in the debt-to-assets ratio to assess the company's leverage and financial health. Further analysis of Chart Industries Inc's debt structure, profitability, and cash flow position would provide a more holistic view of its financial performance and risk profile.