Hexcel Corporation (HXL)

Debt-to-capital 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 stockholders’ equity US$ in thousands 1,527,900 1,716,500 1,554,200 1,485,500 1,510,200
Debt-to-capital ratio 0.31 0.29 0.32 0.36 0.38

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $700,600K ÷ ($700,600K + $1,527,900K)
= 0.31

The debt-to-capital ratio of Hexcel Corporation has shown a general decreasing trend from 0.38 in 2020 to 0.36 in 2021, further declining to 0.32 in 2022, and then to 0.29 in 2023. However, in 2024, there was a slight increase to 0.31. This indicates that the company has been effectively lowering its reliance on debt to finance its operations and investments in recent years, which can be seen as a positive trend in terms of financial stability and risk management. It suggests that a larger portion of the company's capital structure is comprised of equity rather than debt, potentially indicating a stronger financial position and lower financial risk. Overall, the declining debt-to-capital ratio highlights Hexcel Corporation's efforts to maintain a healthy balance between debt and equity in its capital structure.