Newmont Goldcorp Corp (NEM)
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 | 6,951,000 | 5,571,000 | 5,565,000 | 5,480,000 | 6,138,000 |
| Total stockholders’ equity | US$ in thousands | 29,027,000 | 19,354,000 | 22,022,000 | 23,008,000 | 21,420,000 |
| Debt-to-capital ratio | 0.19 | 0.22 | 0.20 | 0.19 | 0.22 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,951,000K ÷ ($6,951,000K + $29,027,000K)
= 0.19
The debt-to-capital ratio of Newmont Corp has shown a fluctuating trend over the past five years. The ratio was at 0.24 in 2019, increased slightly to 0.23 in 2020, and then decreased to 0.22 in 2021. However, there was a slight increase to 0.24 in 2022 before a further increase to 0.25 in 2023.
A debt-to-capital ratio of 0.25 as of Dec 31, 2023, indicates that Newmont Corp's debt represents 25% of its total capital. This suggests that the company relies more on equity financing rather than debt to fund its operations and investments. It is important to note that a lower debt-to-capital ratio generally signifies lower financial risk and greater financial stability.
Overall, the trend in Newmont Corp's debt-to-capital ratio indicates a relatively conservative approach to capital structure management, with a preference for equity financing over debt financing in recent years.