Huntington Ingalls Industries Inc (HII)
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 | 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-equity ratio | 0.54 | 0.72 | 1.17 | 0.89 | 0.81 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,214,000K ÷ $4,093,000K
= 0.54
The debt-to-equity ratio of Huntington Ingalls Industries Inc has fluctuated over the past five years.
As of December 31, 2023, the company's debt-to-equity ratio stood at 0.60, indicating that the company has less debt relative to its equity. This suggests a lower financial risk compared to previous years.
In comparison, the ratios for the preceding years were as follows:
- December 31, 2022: 0.83
- December 31, 2021: 1.17
- December 31, 2020: 0.89
- December 31, 2019: 0.81
The ratio has shown a downward trend since 2021, signifying a reduction in the company's reliance on debt financing to support its operations. This can be seen as a positive sign, as a lower debt-to-equity ratio generally indicates a stronger financial position and lower financial risk.
Overall, Huntington Ingalls Industries Inc has managed to improve its debt structure and financial leverage over the past few years, which could enhance its long-term financial stability and resilience.
Peer comparison
Dec 31, 2023