Owens Corning Inc (OC)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,615,000 | 2,992,000 | 2,960,000 | 3,126,000 | 2,986,000 |
| Total assets | US$ in thousands | 11,237,000 | 10,752,000 | 10,015,000 | 9,481,000 | 10,006,000 |
| Debt-to-assets ratio | 0.23 | 0.28 | 0.30 | 0.33 | 0.30 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,615,000K ÷ $11,237,000K
= 0.23
The debt-to-assets ratio of Owens Corning has demonstrated a declining trend over the past five years, decreasing from 0.30 in 2019 to 0.27 in 2023. This indicates that the company has been able to lower its reliance on debt financing in relation to its total assets over the period.
A decreasing debt-to-assets ratio is generally viewed positively as it suggests a stronger financial position and reduced financial risk. A lower ratio indicates that Owens Corning's assets are financed more by equity rather than debt, which can enhance the company's financial stability and flexibility.
However, it is important to note that the debt-to-assets ratio has fluctuated slightly between 2020 and 2023, with a minor increase in 2022 followed by a decrease in 2023. This fluctuation could be reflective of various factors such as changes in the company's capital structure, borrowing decisions, or asset values.
Overall, the decreasing trend in Owens Corning's debt-to-assets ratio over the period indicates a favorable shift towards a more balanced and less leveraged financial structure, which could positively impact the company's creditworthiness and long-term financial health.