Newell Brands Inc (NWL)
Debt-to-equity 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-equity ratio | 1.47 | 1.35 | 1.17 | 1.33 | 1.09 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,575,000K ÷ $3,112,000K
= 1.47
The debt-to-equity ratio of Newell Brands Inc has exhibited fluctuations over the past five years. In 2023, the ratio stood at 1.58, indicating that the company financed a larger portion of its operations through debt compared to equity. This represented an increase from the previous year when the ratio was at 1.53. The trend over the last five years has shown that the company's reliance on debt has generally been increasing.
In 2021, the debt-to-equity ratio was at a lower level of 1.19, indicating a more conservative capital structure with a greater proportion of financing coming from equity. However, this trend reversed in 2022 and 2023 with higher debt-to-equity ratios of 1.53 and 1.58, respectively.
The year 2020 also saw a relatively high debt-to-equity ratio of 1.45, signaling a significant use of debt in the company's capital structure. In 2019, the ratio was at 1.15, indicating a lower level of debt relative to equity.
Overall, the increasing trend in the debt-to-equity ratio of Newell Brands Inc suggests a rising reliance on debt financing in recent years, which could potentially increase the company's financial risk and interest expenses. Investors and stakeholders may closely monitor this trend to assess the firm's financial leverage and capital structure strategy.
Peer comparison
Dec 31, 2023