Keurig Dr Pepper Inc (KDP)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	9,945,000	11,072,000	11,578,000	11,143,000	12,827,000
Total assets	US$ in thousands	52,130,000	51,837,000	50,598,000	49,779,000	49,518,000
Debt-to-assets ratio		0.19	0.21	0.23	0.22	0.26

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $9,945,000K ÷ $52,130,000K
= 0.19

The debt-to-assets ratio of Keurig Dr Pepper Inc has shown a decreasing trend over the past five years, indicating an improvement in the company's ability to finance its assets through debt. As of December 31, 2023, the ratio stands at 0.27, suggesting that 27% of the company's assets are financed by debt. This ratio has progressively decreased from 0.30 in 2019 to 0.27 in 2023.

A lower debt-to-assets ratio indicates that the company relies less on debt financing and has a stronger financial position with a higher proportion of assets being financed by equity. This trend suggests that Keurig Dr Pepper Inc has been effectively managing its debt levels relative to its asset base, which can contribute to financial stability and reduced financial risk. Overall, the decreasing debt-to-assets ratio reflects a positive financial indicator for the company.