Huntington Ingalls Industries Inc (HII)
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 | 2,214,000 | 2,506,000 | 3,298,000 | 1,686,000 | 1,286,000 |
| Total assets | US$ in thousands | 11,215,000 | 10,857,000 | 10,627,000 | 8,157,000 | 7,031,000 |
| Debt-to-assets ratio | 0.20 | 0.23 | 0.31 | 0.21 | 0.18 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,214,000K ÷ $11,215,000K
= 0.20
Huntington Ingalls Industries Inc's debt-to-assets ratio has shown fluctuation over the past five years. The ratio was 0.22 as of December 31, 2023, marking a decrease from the previous year's ratio of 0.27. This decrease suggests that the company relied less on debt financing relative to its assets in 2023 compared to 2022.
Looking back further, the trend indicates that the debt-to-assets ratio was highest in 2021 at 0.31 and has generally been on a downward trajectory since then. The decrease in the ratio from 2021 to 2023 indicates a positive trend of decreasing leverage, which could be interpreted as a sign of improved financial stability and risk management.
In 2020 and 2019, the debt-to-assets ratios were 0.21 and 0.18, respectively, depicting a relatively lower leverage position compared to the more recent years. This suggests that the company has been gradually reducing its reliance on debt to finance its operations and investments over the years.
Overall, the decreasing trend in the debt-to-assets ratio for Huntington Ingalls Industries Inc indicates a positive direction in terms of managing its financial leverage, which may enhance its financial health and resilience in the long term.
Peer comparison
Dec 31, 2023