PPG Industries Inc (PPG)
Debt-to-equity 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-equity ratio | 0.73 | 0.72 | 0.80 | 0.99 | 0.99 | 1.07 | 1.09 | 1.10 | 1.05 | 0.97 | 1.02 | 0.91 | 0.91 | 0.91 | 0.95 | 1.01 | 0.86 | 0.93 | 0.95 | 0.94 |
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 shown a gradual decline over the last two years, indicating a positive trend in the company's capital structure. In Q1 2022, the ratio was at its peak of 1.15, suggesting a higher proportion of debt relative to equity. However, since then, the ratio has steadily decreased to 0.77 in Q4 2023, signaling a reduction in the company's reliance on debt financing.
A decreasing debt-to-equity ratio can indicate improving financial health and reduced financial risk for PPG Industries, Inc. It implies that the company is relying more on equity financing rather than debt, which can enhance its financial stability and flexibility. Overall, the declining trend in the debt-to-equity ratio reflects a positive trajectory in PPG Industries, Inc.'s capital structure management.
Peer comparison
Dec 31, 2023