John Bean Technologies Corporation (JBT)
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 | 646,400 | 977,300 | 674,400 | 522,500 | 698,300 |
| Total stockholders’ equity | US$ in thousands | 1,488,900 | 905,400 | 750,500 | 637,100 | 569,500 |
| Debt-to-equity ratio | 0.43 | 1.08 | 0.90 | 0.82 | 1.23 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $646,400K ÷ $1,488,900K
= 0.43
The debt-to-equity ratio of John Bean Technologies Corp has shown a decreasing trend over the past five years. In 2019, the ratio was relatively high at 1.23, indicating a higher level of debt compared to equity. However, there has been a significant improvement in the company's capital structure as the ratio decreased to 0.43 in 2023, suggesting a lower reliance on debt financing relative to shareholders' equity.
The decreasing trend in the debt-to-equity ratio could indicate that the company is reducing its debt levels or increasing its equity base, which may lead to a stronger financial position and lower financial risk. A lower debt-to-equity ratio is generally considered favorable as it implies a more conservative capital structure and lower financial leverage.
Overall, the decreasing trend in John Bean Technologies Corp's debt-to-equity ratio from 2019 to 2023 suggests an improvement in the company's financial health and a more balanced mix of debt and equity in its capital structure.
Peer comparison
Dec 31, 2023