Howmet Aerospace Inc (HWM)
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 | 3,500,000 | 3,794,000 | 3,989,000 | 3,988,000 | 4,162,000 | 4,170,000 | 4,169,000 | 4,228,000 | 4,227,000 | 4,272,000 | 4,227,000 | 4,224,000 | 4,699,000 | 4,697,000 | 4,695,000 | 5,777,000 | 4,906,000 | 4,905,000 | 5,901,000 | 5,899,000 |
| Total stockholders’ equity | US$ in thousands | 4,037,000 | 3,872,000 | 3,775,000 | 3,761,000 | 3,601,000 | 3,273,000 | 3,421,000 | 3,457,000 | 3,508,000 | 3,579,000 | 3,598,000 | 3,662,000 | 3,577,000 | 3,501,000 | 3,449,000 | 4,783,000 | 4,591,000 | 4,696,000 | 4,854,000 | 5,166,000 |
| Debt-to-capital ratio | 0.46 | 0.49 | 0.51 | 0.51 | 0.54 | 0.56 | 0.55 | 0.55 | 0.55 | 0.54 | 0.54 | 0.54 | 0.57 | 0.57 | 0.58 | 0.55 | 0.52 | 0.51 | 0.55 | 0.53 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,500,000K ÷ ($3,500,000K + $4,037,000K)
= 0.46
The debt-to-capital ratio of Howmet Aerospace Inc has shown a declining trend over the past eight quarters, decreasing from 0.56 in Q3 2022 to 0.48 in Q4 2023. This ratio measures the proportion of the company's capital that is financed by debt, with a lower ratio indicating a lower dependency on debt financing.
The consistent decrease in the debt-to-capital ratio suggests that Howmet Aerospace Inc has been managing its debt levels effectively relative to its capital structure. This trend may signify improved financial stability and decreased financial risk for the company as it relies less on debt to fund its operations and investments.
However, it is worth noting that the ratio has hovered around the range of 0.48 to 0.51 in the most recent quarters, indicating a relatively stable debt-to-capital structure for the company. Monitoring future changes in this ratio will be essential to assess Howmet Aerospace Inc's ongoing debt management strategy and its impact on overall financial health and performance.
Peer comparison
Dec 31, 2023