PPG Industries Inc (PPG)
Debt-to-equity 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-equity ratio | 0.73 | 0.99 | 1.05 | 0.91 | 0.86 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,748,000K ÷ $7,832,000K
= 0.73
The debt-to-equity ratio of PPG Industries, Inc. has exhibited a fluctuating trend over the past five years.
In 2019, the ratio was at its lowest point at 0.96, suggesting a more conservative capital structure with a higher proportion of equity funding compared to debt.
Subsequently, there was a noticeable increase in the ratio in 2020 to 1.01, indicating a slight shift towards a higher reliance on debt financing relative to equity.
However, in 2021 and 2022, the debt-to-equity ratio continued to rise to 1.05 and 1.03, respectively, signifying a more leveraged position with an increasing proportion of debt in the capital structure.
Notably, in 2023, there was a decrease in the ratio to 0.77, indicating a reduction in the debt-to-equity leverage and a potential shift back towards a more balanced mix of debt and equity.
Overall, the fluctuations in the debt-to-equity ratio suggest that PPG Industries, Inc. has been actively managing its capital structure over the years to optimize its financial leverage and risk profile.
Peer comparison
Dec 31, 2023