Hexcel Corporation (HXL)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	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	1,050,600	1,115,200	1,115,800	1,160,000
Total stockholders’ equity	US$ in thousands	1,716,500	1,646,300	1,666,100	1,622,200	1,554,200	1,445,000	1,480,300	1,487,100	1,485,500	1,494,300	1,502,800	1,486,900	1,510,200	1,499,400	1,436,900	1,421,100	1,446,100	1,417,800	1,442,400	1,372,400
Debt-to-capital ratio		0.29	0.31	0.32	0.32	0.32	0.36	0.35	0.37	0.36	0.37	0.38	0.38	0.38	0.40	0.47	0.49	0.42	0.44	0.44	0.46

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 declining trend over the past eight quarters. The ratio decreased from 0.37 in Q1 2022 to 0.29 in Q4 2023. This suggests that Hexcel Corp. has been using less debt relative to its total capital over this period.

A lower debt-to-capital ratio indicates that the company is relying more on equity financing rather than debt to fund its operations and investments. This can be a positive sign for investors and creditors as it reduces the financial risk associated with high debt levels.

Overall, the consistent decrease in the debt-to-capital ratio of Hexcel Corp. over the observed period indicates a strengthening financial position and prudent debt management by the company. It also suggests that Hexcel Corp. may have a better ability to meet its debt obligations and may be viewed more favorably by creditors.