Itron Inc (ITRI)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,242,420 | 454,827 | 452,526 | 450,228 | 902,577 |
| Total stockholders’ equity | US$ in thousands | 1,390,600 | 1,310,910 | 1,168,470 | 1,116,080 | 816,548 |
| Debt-to-equity ratio | 0.89 | 0.35 | 0.39 | 0.40 | 1.11 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,242,420K ÷ $1,390,600K
= 0.89
Based on the provided data, Itron Inc's debt-to-equity ratio has exhibited a declining trend over the years. The ratio stood at 1.11 as of December 31, 2020, indicating that the company had higher levels of debt compared to equity. However, over the subsequent years, the ratio decreased significantly to 0.40 as of December 31, 2021, further dropping to 0.39 by December 31, 2022, and 0.35 by December 31, 2023.
This declining trend in the debt-to-equity ratio suggests that Itron Inc has been reducing its reliance on debt financing and improving its financial position in relation to equity. However, it is worth noting that there was a slight increase in the ratio to 0.89 as of December 31, 2024, indicating a potential increase in debt levels relative to equity at the end of that year.
Overall, the decreasing trend in the debt-to-equity ratio until 2023 indicates a positive sign of improved financial stability and a lower level of financial risk for Itron Inc. However, the increase in the ratio in 2024 may warrant further investigation to understand the reasons behind the change and ensure the company's financial health moving forward.
Peer comparison
Dec 31, 2024