Hexcel Corporation (HXL)

Debt-to-equity 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-equity ratio		0.41	0.47	0.55	0.61	0.73

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $699,400K ÷ $1,716,500K
= 0.41

The debt-to-equity ratio of Hexcel Corp. has been gradually declining over the past five years from 0.73 in 2019 to 0.41 in 2023. This indicates an improving financial position in terms of leverage and indicates that the company is relying less on debt financing relative to equity financing. A lower debt-to-equity ratio is generally seen as a positive sign as it reflects lower financial risk and a stronger ability to cover debt obligations. The decreasing trend in the ratio suggests that the company may be effectively managing its capital structure and debt levels, which could enhance its financial stability and long-term sustainability.