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.
Peer comparison
Dec 31, 2023