Keurig Dr Pepper Inc (KDP)

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	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-equity ratio		0.39	0.44	0.46	0.47	0.55

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $9,945,000K ÷ $25,676,000K
= 0.39

The debt-to-equity ratio of Keurig Dr Pepper Inc has fluctuated over the past five years, ranging from 0.50 to 0.63. The ratio indicates that the company has been using a moderate level of debt to finance its operations in comparison to equity. In 2023, the ratio decreased slightly to 0.54 from 0.50 in 2022, suggesting a lower reliance on debt for funding compared to the previous year. This potentially reflects a favorable shift towards a more balanced capital structure, where equity plays a more significant role in the company's financial structure. Overall, the trend in the debt-to-equity ratio for Keurig Dr Pepper Inc indicates a prudent approach to managing its financial leverage and maintaining a reasonable level of debt relative to equity in its capital structure.