Kenvue Inc. (KVUE)

Debt-to-capital ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023
Long-term debt US$ in thousands 7,500,000 8,000,000 7,600,000 7,700,000 8,000,000
Total stockholders’ equity US$ in thousands 9,668,000 10,644,000 10,178,000 10,621,000 11,211,000
Debt-to-capital ratio 0.44 0.43 0.43 0.42 0.42

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $7,500,000K ÷ ($7,500,000K + $9,668,000K)
= 0.44

The debt-to-capital ratio of Kenvue Inc. has displayed a gradual increase over the five quarters indicated in the data provided. Starting at 0.42 as of December 31, 2023, the ratio has steadily climbed to 0.44 by December 31, 2024. This suggests that the company's level of debt in relation to its total capital has been on the rise during this period. A higher debt-to-capital ratio could indicate that Kenvue Inc. is relying more on debt financing as opposed to equity, potentially increasing financial risk. It would be prudent for stakeholders to closely monitor this trend and assess the company's ability to manage its debt obligations effectively in the future.