Hexcel Corporation (HXL)

Debt-to-equity ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Long-term debt US$ in thousands 700,600 805,100 794,900 714,600 699,400 754,100 779,000 768,500 723,300 797,000 812,000 857,500 822,400 876,400 904,500 912,000 925,500 998,700 1,264,700 1,389,500
Total stockholders’ equity US$ in thousands 1,527,900 1,589,500 1,571,200 1,632,100 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
Debt-to-equity ratio 0.46 0.51 0.51 0.44 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

December 31, 2024 calculation

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

The debt-to-equity ratio of Hexcel Corporation has shown a declining trend from 0.98 as of March 31, 2020, to 0.46 as of December 31, 2024. This indicates that the company has been effectively reducing its debt relative to its equity over the years. A decreasing debt-to-equity ratio is generally a positive indication as it suggests a lower level of financial leverage and lower risk for the company. It shows that Hexcel has been managing its debt levels well and is becoming less reliant on debt financing in relation to equity. This trend can be viewed favorably by investors and creditors as it implies a stronger financial position and improved solvency for the company.