Ingredion Incorporated (INGR)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,740,000 | 1,940,000 | 1,738,000 | 1,748,000 | 1,766,000 |
| Total assets | US$ in thousands | 7,642,000 | 7,561,000 | 6,999,000 | 6,858,000 | 6,040,000 |
| Debt-to-assets ratio | 0.23 | 0.26 | 0.25 | 0.25 | 0.29 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,740,000K ÷ $7,642,000K
= 0.23
The debt-to-assets ratio of Ingredion Inc has fluctuated over the past five years, ranging from 0.29 to 0.33. This ratio indicates the proportion of the company's assets that are financed through debt. A lower debt-to-assets ratio suggests that a company relies less on debt to fund its operations and investments, which can be viewed positively by investors and lenders as it signifies a lower financial risk.
In the case of Ingredion Inc, the decreasing trend in the debt-to-assets ratio from 0.33 in 2022 to 0.29 in 2023 indicates a reduction in the reliance on debt financing relative to total assets. This trend may suggest that the company is managing its debt levels effectively and improving its financial stability over time. However, it's essential to consider the context of the industry and overall business strategy when interpreting this ratio, as different industries may have varying norms regarding debt levels.
Overall, based on the data provided, Ingredion Inc has maintained a relatively conservative approach to debt financing, with the debt-to-assets ratio consistently below 0.33 in recent years. This indicates a prudent debt management strategy that may enhance the company's financial health and resilience in the long term.
Peer comparison
Dec 31, 2023