Huntington Ingalls Industries Inc (HII)
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 | 2,214,000 | 2,506,000 | 3,298,000 | 1,686,000 | 1,286,000 |
| Total stockholders’ equity | US$ in thousands | 4,093,000 | 3,489,000 | 2,808,000 | 1,901,000 | 1,588,000 |
| Debt-to-capital ratio | 0.35 | 0.42 | 0.54 | 0.47 | 0.45 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,214,000K ÷ ($2,214,000K + $4,093,000K)
= 0.35
Huntington Ingalls Industries Inc's debt-to-capital ratio has shown fluctuations over the past five years. The ratio has decreased from 0.54 in 2021 to 0.37 in 2023, indicating a lower level of debt relative to the company's total capital in the most recent year. This trend suggests that the company has been reducing its reliance on debt financing compared to equity financing.
While the ratio was at its highest in 2021, it has generally been within a relatively stable range between 0.37 and 0.54 over the past five years. A lower debt-to-capital ratio signifies a stronger financial position and lower financial risk, as the company has more equity funding relative to debt. It also suggests a higher capacity to repay debts and withstand economic challenges.
Overall, Huntington Ingalls Industries Inc's decreasing debt-to-capital ratio trend indicates a more conservative approach to capital structure management and a potential focus on strengthening its financial position through a more balanced mix of debt and equity.
Peer comparison
Dec 31, 2023