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