Chart Industries Inc (GTLS)
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 | 3,576,400 | 2,039,800 | 600,800 | 221,600 | 761,000 |
| Total stockholders’ equity | US$ in thousands | 2,786,500 | 2,675,500 | 1,616,600 | 1,572,700 | 1,227,600 |
| Debt-to-capital ratio | 0.56 | 0.43 | 0.27 | 0.12 | 0.38 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,576,400K ÷ ($3,576,400K + $2,786,500K)
= 0.56
The debt-to-capital ratio of Chart Industries Inc has shown a fluctuating trend over the past five years. The ratio increased from 0.22 at the end of 2020 to 0.39 at the end of 2019, indicating a higher level of debt relative to capital in that period. Subsequently, the ratio decreased to 0.35 at the end of 2021, reflecting a reduction in debt compared to capital.
However, a significant increase was noted at the end of 2022, with the ratio reaching 0.46, suggesting a higher reliance on debt to finance the company's operations. This trend continued in the following year, as the debt-to-capital ratio further rose to 0.58 at the end of 2023.
Overall, the fluctuation in the debt-to-capital ratio of Chart Industries Inc indicates varying levels of debt relative to total capital over the years, with the ratio experiencing both increases and decreases within the period under review. The upward trend in recent years may indicate a shift towards a more debt-heavy financing structure, which could potentially impact the company's financial risk and leverage position.