Howmet Aerospace Inc (HWM)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,500,000 | 4,162,000 | 4,227,000 | 4,699,000 | 4,906,000 |
| Total assets | US$ in thousands | 10,428,000 | 10,255,000 | 10,219,000 | 11,443,000 | 17,562,000 |
| Debt-to-assets ratio | 0.34 | 0.41 | 0.41 | 0.41 | 0.28 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,500,000K ÷ $10,428,000K
= 0.34
The debt-to-assets ratio of Howmet Aerospace Inc has shown some fluctuations over the past five years. In 2023, the ratio stands at 0.36, representing a decrease from the previous year's ratio of 0.41. This indicates that the company has reduced its reliance on debt financing relative to its total assets.
However, compared to 2019 and 2021 where the ratio was at 0.34 and 0.41 respectively, the current ratio suggests a higher level of debt utilization. The upward trend from 0.34 in 2019 to 0.44 in 2020 highlights a significant increase in debt relative to assets, followed by a subsequent decrease in 2023.
Overall, while the recent decrease in the debt-to-assets ratio may indicate improved financial health and reduced risk associated with debt, a historical perspective shows some inconsistency in the company's debt management strategy. Further analysis of the company's overall financial performance and capital structure may provide additional insights into these fluctuations.
Peer comparison
Dec 31, 2023