ITT Inc (ITT)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 232,600 | 5,700 | 7,700 | 9,900 | 13,000 |
| Total stockholders’ equity | US$ in thousands | 2,762,600 | 2,528,200 | 2,248,100 | 2,225,800 | 2,126,400 |
| Debt-to-capital ratio | 0.08 | 0.00 | 0.00 | 0.00 | 0.01 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $232,600K ÷ ($232,600K + $2,762,600K)
= 0.08
The debt-to-capital ratio for ITT Inc has shown a consistently low level over the past few years. As of December 31, 2020, the ratio stood at 0.01, indicating a minimal reliance on debt in relation to the company's overall capital structure. Subsequently, for the years ending December 31, 2021, December 31, 2022, and December 31, 2023, the debt-to-capital ratios remained at 0.00, signifying a debt-free capital structure during these periods.
However, there was a notable increase in the debt-to-capital ratio for the year ending December 31, 2024, rising to 0.08. This suggests a higher proportion of debt relative to the company's capital, possibly indicating a shift in financing strategy or increased borrowing during that particular period.
Overall, ITT Inc's debt-to-capital ratio has historically been extremely low, reflecting a conservative approach to debt management and a strong financial position with minimal financial leverage. The sudden increase in the ratio in 2024 may warrant further investigation to understand the factors driving this change and evaluate its potential implications for the company's financial health and risk profile.
Peer comparison
Dec 31, 2024