PPG Industries Inc (PPG)

Debt-to-capital ratio

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Long-term debt US$ in thousands 5,748,000 5,596,000 6,099,000 7,082,000 6,503,000 6,478,000 6,766,000 6,834,000 6,572,000 6,092,000 6,387,000 5,336,000 5,171,000 4,828,000 4,613,000 4,751,000 4,539,000 4,885,000 4,845,000 4,626,000
Total stockholders’ equity US$ in thousands 7,832,000 7,751,000 7,614,000 7,142,000 6,592,000 6,034,000 6,182,000 6,218,000 6,286,000 6,253,000 6,242,000 5,839,000 5,689,000 5,310,000 4,832,000 4,723,000 5,284,000 5,247,000 5,079,000 4,904,000
Debt-to-capital ratio 0.42 0.42 0.44 0.50 0.50 0.52 0.52 0.52 0.51 0.49 0.51 0.48 0.48 0.48 0.49 0.50 0.46 0.48 0.49 0.49

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

The debt-to-capital ratio of PPG Industries, Inc. has shown fluctuation over the past eight quarters, ranging from 0.44 to 0.53. In Q1 2022, the ratio was at its highest at 0.53, and although it decreased slightly in the subsequent quarters, it remained relatively stable. However, in Q2 2023, the ratio increased to 0.48 and continued to rise to 0.51 in Q3 2023, indicating an increase in debt relative to capital.

A debt-to-capital ratio above 0.5 typically suggests that the company is relying more on debt to finance its operations compared to its equity capital. Investors and creditors may view a higher ratio as a sign of increased financial risk. It is important for PPG Industries to closely monitor and manage its debt levels to maintain a balanced capital structure and sustainable financial health.


Peer comparison

Dec 31, 2023

Company name
Symbol
Debt-to-capital ratio
PPG Industries Inc
PPG
0.42
Axalta Coating Systems Ltd
AXTA
0.67
RPM International Inc
RPM
0.00