Hexcel Corporation (HXL)

Debt-to-equity 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-equity ratio		0.46	0.41	0.47	0.55	0.61

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $700,600K ÷ $1,527,900K
= 0.46

Hexcel Corporation's debt-to-equity ratio has shown a declining trend over the past five years, decreasing from 0.61 in December 31, 2020, to 0.46 in December 31, 2024. This indicates a decreasing reliance on debt financing relative to equity over the period analyzed. A lower debt-to-equity ratio generally suggests a lower financial risk for the company, as it indicates a healthier balance between debt and shareholder equity in the company's capital structure. It may also reflect better financial management and improved profitability, as the company is able to fund its operations and growth using more equity rather than debt. Overall, the decreasing trend in Hexcel Corporation's debt-to-equity ratio is a positive indicator of the company's financial health and stability.