Hexcel Corporation (HXL)

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	699,400	723,300	822,400	925,500	1,050,600
Total assets	US$ in thousands	2,918,500	2,837,300	2,819,400	2,917,800	3,128,600
Debt-to-assets ratio		0.24	0.25	0.29	0.32	0.34

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $699,400K ÷ $2,918,500K
= 0.24

The debt-to-assets ratio of Hexcel Corp. has shown a decreasing trend over the past five years, indicating a favorable financial position in terms of leverage.

In 2023, the ratio improved to 0.24, down from 0.25 in 2022, showing that the company relied less on debt to finance its assets. This reduction was consistent with the trend observed in the prior years.

The decreasing trend in the debt-to-assets ratio suggests that Hexcel Corp. has been effectively managing its debt levels relative to its total assets. A lower ratio signifies a lower dependency on debt for financing assets, which can be viewed positively by investors and creditors as it implies lower financial risk and potentially greater financial stability.

Overall, the declining trend in the debt-to-assets ratio of Hexcel Corp. indicates a strengthening financial position with less reliance on debt as a source of funding.