Keurig Dr Pepper Inc (KDP)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	12,912,000	9,945,000	11,072,000	11,578,000	11,143,000
Total stockholders’ equity	US$ in thousands	24,243,000	25,676,000	25,126,000	24,972,000	23,829,000
Debt-to-capital ratio		0.35	0.28	0.31	0.32	0.32

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $12,912,000K ÷ ($12,912,000K + $24,243,000K)
= 0.35

The debt-to-capital ratio of Keurig Dr Pepper Inc has shown a consistent trend over the years, starting at 0.32 as of December 31, 2020, remaining the same in 2021, decreasing slightly to 0.31 in 2022, further declining to 0.28 in 2023, and then increasing to 0.35 by December 31, 2024.

The decreasing trend from 2020 to 2023 indicates a reduction in the level of debt relative to the total capital structure of the company. This can be a positive sign as it suggests improved financial stability and lower financial risk.

However, the increase in the ratio in 2024 to 0.35 may indicate that Keurig Dr Pepper Inc has taken on more debt relative to its capital, which could potentially lead to higher financial risk. It would be essential for stakeholders to further analyze the reasons behind this increase and assess their implications for the company's financial health and ability to meet its debt obligations.