Hexcel Corporation (HXL)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	700,600	699,400	723,300	822,400	925,500
Total assets	US$ in thousands	2,725,600	2,918,500	2,837,300	2,819,400	2,917,800
Debt-to-assets ratio		0.26	0.24	0.25	0.29	0.32

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $700,600K ÷ $2,725,600K
= 0.26

Hexcel Corporation's debt-to-assets ratio has shown a consistent decline over the past five years, reflecting a decreasing reliance on debt to finance its assets. The ratio decreased from 0.32 in December 2020 to 0.26 in December 2024. This trend indicates that Hexcel has been effectively managing its debt levels in relation to its asset base. A decreasing debt-to-assets ratio is generally seen as positive, as it suggests a lower financial risk and greater financial stability for the company. It indicates that Hexcel has been successful in reducing its debt burden relative to its total assets, which could improve its overall financial health and ability to invest in future growth opportunities.