International Flavors & Fragrances Inc (IFF)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 9,186,000 | 10,373,000 | 10,768,000 | 3,779,000 | 3,997,440 |
| Total stockholders’ equity | US$ in thousands | 14,611,000 | 17,655,000 | 21,082,000 | 6,310,000 | 6,217,300 |
| Debt-to-capital ratio | 0.39 | 0.37 | 0.34 | 0.37 | 0.39 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $9,186,000K ÷ ($9,186,000K + $14,611,000K)
= 0.39
The debt-to-capital ratio of International Flavors & Fragrances Inc. has shown some variation over the past five years. In 2023, the ratio increased to 0.41 from 0.38 in 2022, indicating a higher level of debt relative to total capital. However, it is worth noting that the ratio was at the same level of 0.41 in 2020 and 2019.
A debt-to-capital ratio of 0.41 in 2023 suggests that approximately 41% of the company's capital structure is funded through debt, while the remaining 59% is financed by equity. This level of leverage indicates a moderate reliance on debt financing, which may have implications for the company's financial risk and cost of capital.
Overall, the trend of the debt-to-capital ratio for International Flavors & Fragrances Inc. shows fluctuations but has generally remained within a relatively stable range over the past five years. Continued monitoring and analysis of this ratio, along with other financial metrics, will provide a more comprehensive assessment of the company's financial health and risk profile.
Peer comparison
Dec 31, 2023