Keurig Dr Pepper Inc (KDP)

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	9,945,000	11,072,000	11,578,000	11,143,000	12,827,000
Total stockholders’ equity	US$ in thousands	25,676,000	25,126,000	24,972,000	23,829,000	23,257,000
Debt-to-capital ratio		0.28	0.31	0.32	0.32	0.36

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $9,945,000K ÷ ($9,945,000K + $25,676,000K)
= 0.28

Keurig Dr Pepper Inc's debt-to-capital ratio has been relatively stable over the past five years, ranging from 0.34 to 0.39. The ratio measures the proportion of the company's total debt relative to its total capital, which includes both debt and equity.

The decreasing trend from 0.39 in 2019 to 0.35 in 2023 indicates that the company has been reducing its reliance on debt in its capital structure over the years. A lower debt-to-capital ratio suggests a lower level of financial risk as the company is less leveraged.

Overall, Keurig Dr Pepper Inc's debt-to-capital ratio reflects a moderate level of debt in its capital structure, indicating a balanced approach to financing operations through a mix of debt and equity. It is important for investors and stakeholders to monitor this ratio over time to assess the company's financial health and risk profile.