PPG Industries Inc (PPG)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,748,000 | 6,503,000 | 6,572,000 | 5,171,000 | 4,539,000 |
| Total assets | US$ in thousands | 21,647,000 | 20,744,000 | 21,351,000 | 19,556,000 | 17,708,000 |
| Debt-to-assets ratio | 0.27 | 0.31 | 0.31 | 0.26 | 0.26 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,748,000K ÷ $21,647,000K
= 0.27
The trend analysis of PPG Industries, Inc.'s debt-to-assets ratio over the past five years reflects a generally decreasing pattern from 0.29 in 2019 to 0.28 in 2023. This suggests that the company has been effectively managing its debt levels relative to its total assets.
A lower debt-to-assets ratio indicates that PPG Industries has been relying less on debt financing to support its operations and investments, which can be considered a positive sign of financial health and stability. It could imply that the company has a strong ability to meet its financial obligations and may have more flexibility in managing its capital structure.
However, it is important to note that while a decreasing debt-to-assets ratio is generally seen as favorable, it is also crucial to assess the company's overall financial strategy and risk tolerance to ensure that the leverage levels are sustainable and aligned with its long-term business goals.
Peer comparison
Dec 31, 2023