Huntington Ingalls Industries Inc (HII)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,110,000 | 2,214,000 | 2,506,000 | 3,298,000 | 1,686,000 |
| Total stockholders’ equity | US$ in thousands | 4,666,000 | 4,093,000 | 3,489,000 | 2,808,000 | 1,901,000 |
| Debt-to-capital ratio | 0.40 | 0.35 | 0.42 | 0.54 | 0.47 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,110,000K ÷ ($3,110,000K + $4,666,000K)
= 0.40
The debt-to-capital ratio of Huntington Ingalls Industries Inc has exhibited fluctuations over the past five years, as shown in the data provided. As of December 31, 2020, the ratio stood at 0.47, indicating that 47% of the company's capital was financed through debt.
Subsequently, the ratio increased to 0.54 by the end of 2021, suggesting a higher reliance on debt financing. However, there was a notable decrease in the ratio to 0.42 by December 31, 2022. This reduction implies a more balanced capital structure with a lower proportion of debt in relation to total capital.
Further significant improvement is noted in the following years, as the ratio continued to decline to 0.35 by December 31, 2023, and then slightly increased to 0.40 by the end of 2024. Overall, the downward trend in the debt-to-capital ratio indicates a decreasing reliance on debt financing relative to total capital over the five-year period, potentially enhancing the company's financial stability and risk management.
Peer comparison
Dec 31, 2024