Hertz Global Holdings Inc (HTZ)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,092,000 | 3,390,000 | 2,839,000 | 2,774,000 | 2,645,000 | 2,761,000 | 2,729,000 | 2,702,000 | 2,977,000 | 4,206,000 | 3,620,000 | 265,000 | 56,000 | 341,000 | 559,000 | 1,372,000 | 1,769,000 | 1,874,000 | 964,000 | 922,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 been relatively stable over the past five quarters, ranging between 0.83 and 0.85. This indicates that the company's capital structure has been consistently reliant on debt to finance its operations and investments, with debt accounting for approximately 83% to 85% of the total capital employed.
A debt-to-capital ratio of 0.84, as seen in the most recent quarter, implies that the company carries a significant level of debt relative to its total capitalization. This may pose certain risks, such as higher interest expenses and susceptibility to fluctuations in interest rates. It also suggests that Hertz may have limited financial flexibility compared to companies with lower debt levels.
Investors and creditors typically monitor the debt-to-capital ratio as a measure of a company's leverage and solvency. While a higher ratio can amplify returns when profitability is strong, it can also expose the company to greater financial risk during economic downturns or challenging market conditions.
Overall, the consistent debt-to-capital ratio of Hertz Global Holdings Inc. around 0.84 indicates a stable but relatively high level of leverage, warranting close attention to the company's ability to manage its debt obligations and sustain its financial health in the long run.
Peer comparison
Dec 31, 2023