ITT Inc (ITT)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,700K ÷ $2,528,200K
= 0.00
The debt-to-equity ratio of ITT Inc has fluctuated over the past five years. In 2019 and 2020, the company exhibited a low debt-to-equity ratio of 0.04 and 0.06, indicating a conservative financial structure with a lower reliance on debt financing compared to equity.
However, in 2021, the ratio increased to 0.09, suggesting a slightly higher level of debt relative to equity. This could indicate a strategic decision to leverage more debt to fuel growth or invest in opportunities.
In 2022, the ratio spiked to 0.20, representing a significant increase in the proportion of debt in the capital structure compared to equity. This significant uptick may raise concerns about the company's financial risk and ability to manage debt obligations effectively.
By the end of 2023, the debt-to-equity ratio improved to 0.08, although it remained higher than the ratios observed in 2019 and 2020. This improvement could indicate efforts by ITT Inc to reduce debt levels or increase equity financing to strengthen its financial position.
Overall, the trend in ITT Inc's debt-to-equity ratio shows variability, highlighting the company's changing approach to capital structure and risk management over the years. Further analysis of the reasons behind these fluctuations would provide deeper insights into the company's financial strategy and performance.
Peer comparison
Dec 31, 2023