Owens Corning Inc (OC)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,116,000 | 2,615,000 | 2,992,000 | 2,960,000 | 3,126,000 |
| Total stockholders’ equity | US$ in thousands | 5,077,000 | 5,166,000 | 4,575,000 | 4,296,000 | 3,901,000 |
| Debt-to-equity ratio | 1.01 | 0.51 | 0.65 | 0.69 | 0.80 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,116,000K ÷ $5,077,000K
= 1.01
The debt-to-equity ratio of Owens Corning Inc has shown fluctuations over the past five years. As of December 31, 2020, the ratio stood at 0.80, indicating that the company had more debt relative to its equity. However, this ratio gradually decreased to 0.51 by December 31, 2023, signaling a decreasing reliance on debt financing compared to equity.
It is worth noting that the ratio spiked to 1.01 by December 31, 2024, suggesting a significant increase in debt relative to equity in that period. This abrupt change in the ratio may warrant further investigation into the company's financial strategy and risk management practices during that particular year.
Overall, the decreasing trend in the debt-to-equity ratio from 2020 to 2023 reflects a potential improvement in the company's financial health and reduced leverage. However, the sudden increase in the ratio in 2024 underscores the importance of closely monitoring Owens Corning Inc's debt levels and capital structure going forward.