Howmet Aerospace Inc (HWM)
Debt-to-equity 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-equity ratio | 0.87 | 0.98 | 1.06 | 1.06 | 1.16 | 1.27 | 1.22 | 1.22 | 1.20 | 1.19 | 1.17 | 1.15 | 1.31 | 1.34 | 1.36 | 1.21 | 1.07 | 1.04 | 1.22 | 1.14 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,500,000K ÷ $4,037,000K
= 0.87
The debt-to-equity ratio of Howmet Aerospace Inc has been fluctuating over the past eight quarters. In Q4 2022, the ratio stood at 1.16, indicating that the company had $1.16 in debt for every $1 of equity. Subsequently, the ratio showed a decreasing trend, reaching its lowest point at 0.92 in Q4 2023, which suggests a lower reliance on debt financing relative to equity in that period. However, it saw a slight uptick in the following quarters, settling at 1.06 in Q1 and Q2 2023, and increasing further to 1.22 in Q3 2023. This progression signals a higher proportion of debt compared to equity in the company's capital structure during these periods. Overall, monitoring this ratio is crucial in assessing Howmet Aerospace Inc's financial leverage and risk profile.
Peer comparison
Dec 31, 2023