PHINIA Inc. (PHIN)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||
|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,887,000 | 1,892,000 | 1,992,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,887,000K)
= 0.00
PHINIA Inc. has consistently maintained a debt-to-capital ratio of 0.00 throughout the past three quarters of 2023. This indicates that the company has been financing its operations without the use of debt and relies solely on equity financing. While a lower debt-to-capital ratio signifies lower financial risk and less dependence on debt, it may also suggest potentially missed opportunities for leveraging debt to maximize returns. It is important to assess the company's overall financial strategy and future capital structure plans to fully understand the implications of this consistently low debt-to-capital ratio.
Peer comparison
Dec 31, 2023