Hexcel Corporation (HXL)

Debt-to-equity 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-equity ratio		0.41	0.46	0.47	0.47	0.47	0.55	0.55	0.58	0.55	0.59	0.60	0.61	0.61	0.67	0.88	0.98	0.73	0.79	0.77	0.85

December 31, 2023 calculation

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

Hexcel Corp.'s debt-to-equity ratio has shown a decreasing trend over the past four quarters, indicating a favorable shift towards a lower dependency on debt financing compared to equity. The ratio decreased from 0.58 in Q1 2022 to 0.41 in Q4 2023. This implies that the company is relying less on debt to finance its operations and investments, which can be seen as a positive sign as lower debt levels generally indicate lower financial risk and greater financial stability. It is worth noting that the ratio has been consistently below 1, suggesting that Hexcel Corp. has been maintaining a conservative capital structure with a higher proportion of equity compared to debt in its capital mix.