Newell Brands Inc (NWL)
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 | 4,575,000 | 4,756,000 | 4,883,000 | 5,141,000 | 5,391,000 |
| Total stockholders’ equity | US$ in thousands | 3,112,000 | 3,519,000 | 4,158,000 | 3,874,000 | 4,963,000 |
| Debt-to-capital ratio | 0.60 | 0.57 | 0.54 | 0.57 | 0.52 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,575,000K ÷ ($4,575,000K + $3,112,000K)
= 0.60
The debt-to-capital ratio of Newell Brands Inc has fluctuated over the past five years, ranging from 0.54 to 0.61. This ratio indicates the proportion of the company's capital that is funded by debt. In 2023, the debt-to-capital ratio increased to 0.61 from 0.60 in 2022, suggesting a slightly higher reliance on debt financing. Comparing to previous years, the current ratio is above the historical average. While a higher ratio could indicate increased financial risk due to a greater debt burden, it may also signal strategic decisions to leverage debt for growth opportunities or capital structure optimization. It is important for stakeholders to further analyze the company's overall financial health, debt management strategies, and industry benchmarks when evaluating the implications of this trend.
Peer comparison
Dec 31, 2023