Keurig Dr Pepper Inc (KDP)

Debt-to-equity ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	9,945,000	9,940,000	9,934,000	9,929,000	11,072,000	11,561,000	11,555,000	11,584,000	11,578,000	11,727,000	11,721,000	11,715,000	11,143,000	11,707,000	11,849,000	12,431,000	12,827,000	13,147,000	13,164,000	13,246,000
Total stockholders’ equity	US$ in thousands	25,676,000	25,364,000	25,268,000	25,103,000	25,126,000	25,102,000	25,391,000	25,511,000	24,972,000	24,405,000	24,242,000	24,070,000	23,829,000	23,296,000	22,923,000	22,640,000	23,257,000	22,914,000	22,883,000	22,674,000
Debt-to-equity ratio		0.39	0.39	0.39	0.40	0.44	0.46	0.46	0.45	0.46	0.48	0.48	0.49	0.47	0.50	0.52	0.55	0.55	0.57	0.58	0.58

December 31, 2023 calculation

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

Keurig Dr Pepper Inc's debt-to-equity ratio has been relatively stable over the past eight quarters, ranging from 0.48 to 0.54. This ratio indicates the proportion of debt and equity the company is using to finance its operations and growth. A ratio of 0.54 in Q4 2023 implies that the company has $0.54 of debt for every $1 of equity.

The consistent trend of the debt-to-equity ratio around the 0.50 mark suggests that Keurig Dr Pepper Inc has been maintaining an appropriate balance between debt and equity in its capital structure. A lower ratio indicates lower financial risk, as it implies that the company relies more on equity financing than debt. However, a higher ratio could potentially signal higher financial leverage and risk.

Overall, Keurig Dr Pepper Inc's debt-to-equity ratio reflects a stable and balanced financial position, indicating prudent management of its capital structure over the reviewed quarters.