Owens Corning Inc (OC)
Debt-to-equity ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,116,000 | 5,028,000 | 5,020,000 | 2,645,000 | 2,615,000 | 3,002,000 | 3,004,000 | 2,999,000 | 2,992,000 | 2,988,000 | 2,989,000 | 2,959,000 | 2,960,000 | 2,958,000 | 3,144,000 | 3,145,000 | 3,126,000 | 3,126,000 | 3,314,000 | 3,213,000 |
| Total stockholders’ equity | US$ in thousands | 5,077,000 | 5,623,000 | 5,472,000 | 5,229,000 | 5,166,000 | 5,105,000 | 5,014,000 | 4,791,000 | 4,575,000 | 4,640,000 | 4,540,000 | 4,341,000 | 4,296,000 | 4,210,000 | 4,117,000 | 3,928,000 | 3,901,000 | 3,852,000 | 3,624,000 | 3,487,000 |
| Debt-to-equity ratio | 1.01 | 0.89 | 0.92 | 0.51 | 0.51 | 0.59 | 0.60 | 0.63 | 0.65 | 0.64 | 0.66 | 0.68 | 0.69 | 0.70 | 0.76 | 0.80 | 0.80 | 0.81 | 0.91 | 0.92 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,116,000K ÷ $5,077,000K
= 1.01
Owens Corning Inc's debt-to-equity ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio decreased steadily from 0.92 in March 2020 to 0.51 in December 2023. This downward trend indicates that the company was reducing its reliance on debt in relation to equity during this period.
However, there was a sudden increase in the debt-to-equity ratio to 0.92 in June 2024, followed by further increases to 1.01 by December 31, 2024. This sharp rise suggests that the company significantly increased its debt levels in relation to equity, which could potentially raise concerns about its financial leverage and ability to meet debt obligations.
Overall, the debt-to-equity ratio analysis indicates that Owens Corning Inc experienced a period of decreasing debt leverage followed by a notable surge in debt relative to equity towards the end of the observation period. Monitoring future financial statements and evaluating the company's ability to manage its debt levels will be crucial for investors and stakeholders.