PHINIA Inc. (PHIN)
Debt-to-capital ratio
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|
| Long-term debt | US$ in thousands | 963,000 | — | — |
| Total stockholders’ equity | US$ in thousands | 1,574,000 | 1,704,000 | 1,850,000 |
| Debt-to-capital ratio | 0.38 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $963,000K ÷ ($963,000K + $1,574,000K)
= 0.38
The debt-to-capital ratio for PHINIA Inc. as of March 31, 2024, and September 30, 2024, was 0.00, indicating that the company had no debt relative to its capital during those periods. However, by December 31, 2024, the ratio increased to 0.38, suggesting that the company started utilizing debt to finance its operations or investments. This increase in the debt-to-capital ratio could indicate a shift in the company's capital structure towards more leverage, which might have been a strategic decision to take advantage of lower borrowing costs or capitalize on growth opportunities. It is essential for stakeholders to monitor this ratio over time to assess the company's financial risk and debt management strategies.
Peer comparison
Dec 31, 2024