KBR Inc (KBR)
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 | 1,801,000 | 1,376,000 | 1,875,000 | 1,584,000 | 1,183,000 |
| Total stockholders’ equity | US$ in thousands | 1,383,000 | 1,620,000 | 1,669,000 | 1,580,000 | 1,839,000 |
| Debt-to-capital ratio | 0.57 | 0.46 | 0.53 | 0.50 | 0.39 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,801,000K ÷ ($1,801,000K + $1,383,000K)
= 0.57
Based on the historical data provided for KBR Inc's debt-to-capital ratio, we can observe fluctuations in the ratio over the past five years. The debt-to-capital ratio indicates the proportion of a company's capital structure that is financed by debt.
In 2019, KBR Inc had a relatively lower debt-to-capital ratio of 0.39, suggesting that a smaller portion of its capital was funded by debt compared to the subsequent years. The ratio then increased to 0.50 in 2020, indicating a higher reliance on debt financing that year.
Subsequently, the ratio continued to rise to 0.53 in 2021, signaling a further increase in the proportion of debt in KBR Inc's capital structure. However, in 2022, there was a decrease in the ratio to 0.46, suggesting a reduction in debt financing relative to the previous year.
The most recent data for 2023 shows a significant increase in the debt-to-capital ratio to 0.57, indicating a higher level of debt relative to the company's total capital. This surge may be a result of strategic decisions or financing activities undertaken by KBR Inc during that year.
Overall, the trend in KBR Inc's debt-to-capital ratio reflects varying levels of debt utilization in its capital structure over the years. It is essential for stakeholders to monitor this ratio to assess the company's financial risk and leverage position.
Peer comparison
Dec 31, 2023