Hertz Global Holdings Inc (HTZ)
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 | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,092,000 | 2,645,000 | 2,977,000 | 56,000 | 1,769,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $3,092,000K)
= 0.00
The debt-to-capital ratio of Hertz Global Holdings Inc. has remained relatively stable over the past three years, standing at 0.84 at the end of both 2023 and 2022, and slightly lower at 0.79 at the end of 2021. This ratio indicates that, on average, 84% of the company's capital structure is made up of debt. A higher ratio suggests a higher level of financial risk as a significant portion of the company's capital is funded through debt. This consistent ratio may suggest that Hertz has maintained a consistent leverage level over the past few years. However, further assessment should be conducted to understand the company's overall debt management strategy and its implications for long-term financial stability.
Peer comparison
Dec 31, 2023