Owens Corning Inc (OC)
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 | 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-equity ratio | 0.51 | 0.65 | 0.69 | 0.80 | 0.64 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,615,000K ÷ $5,166,000K
= 0.51
Owens Corning's debt-to-equity ratio has shown a declining trend over the past five years, indicating a decreasing reliance on debt to finance the company's operations and growth. The ratio decreased from 0.64 in 2019 to 0.59 in 2023. This suggests that the company has been gradually reducing its debt levels relative to its equity, which could signify improved financial stability and lower financial risk. A lower debt-to-equity ratio indicates a healthier balance sheet and greater financial flexibility for the company. Overall, Owens Corning's decreasing debt-to-equity ratio trend reflects a positive financial position and prudent financial management.