Hexcel Corporation (HXL)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,716,500	1,554,200	1,485,500	1,510,200	1,446,100
Debt-to-capital ratio		0.29	0.32	0.36	0.38	0.42

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $699,400K ÷ ($699,400K + $1,716,500K)
= 0.29

The debt-to-capital ratio of Hexcel Corp. has shown a decreasing trend over the past five years, indicating a positive sign of lower reliance on debt financing relative to total capital. The ratio decreased from 0.42 in 2019 to 0.29 in 2023. This suggests that the company has been gradually reducing its debt levels or increasing its equity capital, which is generally viewed positively by investors and creditors as it implies a lower risk of financial distress. It is also an indication of improved financial strength and stability. Overall, the decreasing trend in the debt-to-capital ratio reflects a healthier financial position for Hexcel Corp.