PPG Industries Inc (PPG)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 7,832,000 | 6,592,000 | 6,286,000 | 5,689,000 | 5,284,000 |
| Debt-to-capital ratio | 0.42 | 0.50 | 0.51 | 0.48 | 0.46 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,748,000K ÷ ($5,748,000K + $7,832,000K)
= 0.42
PPG Industries, Inc.'s debt-to-capital ratio has shown a decreasing trend over the past five years, declining from 0.49 in 2019 to 0.44 in 2023. This indicates that the company has been relying less on debt to finance its operations and investments relative to its total capital structure. The decreasing trend may imply improved financial health and reduced financial risk for the company, as lower debt levels often result in lower interest expenses and lower vulnerability to economic downturns. It is also essential to note that a lower debt-to-capital ratio signifies that a larger portion of the company's assets is financed by equity, which can be seen as a positive indicator of financial stability and strength.
Peer comparison
Dec 31, 2023