Hertz Global Holdings Inc (HTZ)
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 | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,092,000 | 2,645,000 | 2,977,000 | 56,000 | 1,769,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $3,092,000K
= 0.00
The debt-to-equity ratio of Hertz Global Holdings Inc. has shown a slight decrease from 5.24 in 2022 to 5.07 in 2023. However, compared to the ratio of 3.66 in 2021, the company's leverage has increased significantly. This indicates that the company is relying more on debt financing relative to its equity to fund its operations and growth. Investors and creditors may view a high debt-to-equity ratio as a sign of increased financial risk, as the company may struggle to meet its debt obligations in the future. Management should closely monitor the trend in this ratio and consider strategies to reduce debt levels to improve the company's financial stability and flexibility.
Peer comparison
Dec 31, 2023