ITT Inc (ITT)
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 | 5,700 | 7,700 | 9,900 | 13,000 | 12,900 |
| Total stockholders’ equity | US$ in thousands | 2,528,200 | 2,248,100 | 2,225,800 | 2,126,400 | 2,074,900 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,700K ÷ ($5,700K + $2,528,200K)
= 0.00
The debt-to-capital ratio of ITT Inc has shown fluctuations over the past five years. As of December 31, 2023, the ratio stands at 0.07, indicating that only 7% of the company's capital structure is financed by debt. This represents a significant decrease from the previous year when the ratio was 0.17, suggesting that the company has reduced its reliance on debt financing. Compared to the ratios in 2021, 2020, and 2019 which were 0.09, 0.05, and 0.04 respectively, the current ratio remains relatively low.
The decreasing trend in the debt-to-capital ratio could signify that ITT Inc has been effectively managing its debt levels and working towards a more balanced capital structure. A lower ratio generally indicates lower financial risk and greater financial stability as the company relies less on debt to fund its operations and growth. It is important to continue monitoring this ratio to ensure that the company maintains a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2023