Hexcel Corporation (HXL)

Debt-to-assets ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Long-term debt US$ in thousands 700,600 805,100 794,900 714,600 699,400 754,100 779,000 768,500 723,300 797,000 812,000 857,500 822,400 876,400 904,500 912,000 925,500 998,700 1,264,700 1,389,500
Total assets US$ in thousands 2,725,600 2,862,300 2,827,600 2,821,200 2,918,500 2,846,300 2,921,900 2,907,300 2,837,300 2,775,700 2,819,400 2,853,500 2,819,400 2,872,600 2,917,400 2,893,500 2,917,800 2,972,100 3,222,500 3,433,300
Debt-to-assets ratio 0.26 0.28 0.28 0.25 0.24 0.26 0.27 0.26 0.25 0.29 0.29 0.30 0.29 0.31 0.31 0.32 0.32 0.34 0.39 0.40

December 31, 2024 calculation

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

The debt-to-assets ratio of Hexcel Corporation has shown a decreasing trend from 0.40 as of March 31, 2020, to 0.26 as of December 31, 2024. This indicates that the company has been successfully reducing its debt relative to its total assets over the period under consideration. A lower debt-to-assets ratio suggests that Hexcel Corporation relies less on debt financing and has a stronger financial position in terms of solvency and liquidity. This may be perceived positively by investors and creditors as it lowers the company's financial risk and potential for default. Overall, the decreasing trend in the debt-to-assets ratio reflects a prudent and effective management of debt levels by Hexcel Corporation.