Chart Industries Inc (GTLS)
Debt-to-equity 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-equity ratio | 1.28 | 0.76 | 0.37 | 0.14 | 0.62 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,576,400K ÷ $2,786,500K
= 1.28
The debt-to-equity ratio of Chart Industries Inc has shown fluctuations over the past five years. In 2023, the ratio increased to 1.38 from 0.86 in 2022, indicating a higher level of debt relative to equity. This may suggest increased financial leverage and potential higher financial risk within the company.
Looking back, the ratio steadily increased from 0.28 in 2020 to 0.63 in 2019 before reaching its peak in 2023. The significant rise in the ratio between 2022 and 2023 may signal a more aggressive debt financing strategy or a decrease in equity. This trend warrants further investigation to understand the reasons behind the company's changing capital structure and its implications for financial stability and future growth prospects.