Itron Inc (ITRI)
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 | 454,827 | 452,526 | 450,228 | 902,577 | 932,482 |
| Total stockholders’ equity | US$ in thousands | 1,310,910 | 1,168,470 | 1,116,080 | 816,548 | 776,538 |
| Debt-to-capital ratio | 0.26 | 0.28 | 0.29 | 0.53 | 0.55 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $454,827K ÷ ($454,827K + $1,310,910K)
= 0.26
The debt-to-capital ratio of Itron Inc. has shown a decreasing trend over the past five years, suggesting an improvement in the company's ability to manage its debt levels relative to its total capital.
In 2019 and 2020, the company had relatively high debt-to-capital ratios of 0.55 and 0.53, indicating that more than half of the company's capital was funded by debt during those years. However, there has been a significant decrease in the ratio in the subsequent years, with ratios of 0.29, 0.28, and 0.26 in 2021, 2022, and 2023 respectively.
This positive trend indicates that Itron Inc. has been reducing its reliance on debt financing in favor of other sources of capital, such as equity. A lower debt-to-capital ratio is generally viewed positively by investors and creditors as it indicates a lower risk of financial distress and greater financial stability for the company. Continued monitoring of this ratio will be important to assess the company's ongoing financial health and risk management practices.
Peer comparison
Dec 31, 2023