Masco Corporation (MAS)
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 | 2,945,000 | 2,946,000 | 2,949,000 | 2,792,000 | 2,771,000 |
| Total stockholders’ equity | US$ in thousands | -126,000 | -480,000 | -179,000 | 195,000 | -235,000 |
| Debt-to-capital ratio | 1.04 | 1.19 | 1.06 | 0.93 | 1.09 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,945,000K ÷ ($2,945,000K + $-126,000K)
= 1.04
Masco Corp.'s debt-to-capital ratio has fluctuated over the past five years, ranging from 0.93 to 1.18. In 2023, the ratio decreased to 1.04 from 1.18 in 2022, suggesting a reduction in the proportion of debt relative to the total capital structure. This improvement indicates better debt management or increased equity financing, which can enhance the company's financial stability and reduce financial risk. However, Masco Corp. should continue monitoring its debt levels to maintain an optimal capital structure that balances debt and equity effectively.
Peer comparison
Dec 31, 2023