Owens Corning Inc (OC)
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 | 2,615,000 | 2,992,000 | 2,960,000 | 3,126,000 | 2,986,000 |
| Total stockholders’ equity | US$ in thousands | 5,166,000 | 4,575,000 | 4,296,000 | 3,901,000 | 4,631,000 |
| Debt-to-capital ratio | 0.34 | 0.40 | 0.41 | 0.44 | 0.39 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,615,000K ÷ ($2,615,000K + $5,166,000K)
= 0.34
Owens Corning's debt-to-capital ratio has shown a decreasing trend from 0.44 in 2020 to 0.37 in 2023. This indicates that the company has been relying less on debt and more on equity to finance its operations over the years. A lower debt-to-capital ratio implies that a smaller proportion of the company's capital structure is comprised of debt, which can be interpreted as a positive sign of financial health and lower financial risk. It suggests that the company may have improved its financial stability and reduced its leverage, which could potentially lead to better creditworthiness and lower interest expenses. Overall, Owens Corning's decreasing debt-to-capital ratio reflects a more conservative approach to capital structure management.