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