Resideo Technologies Inc (REZI)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,396,000 | 1,404,000 | 1,220,000 | 1,155,000 | 1,158,000 |
| Total assets | US$ in thousands | 6,645,000 | 6,387,000 | 5,853,000 | 5,610,000 | 5,128,000 |
| Debt-to-assets ratio | 0.21 | 0.22 | 0.21 | 0.21 | 0.23 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,396,000K ÷ $6,645,000K
= 0.21
The debt-to-assets ratio of Resideo Technologies Inc has shown a decreasing trend over the last five years, indicating improvements in the company's financial leverage and risk management. As of December 31, 2023, the ratio stands at 0.32, down from 0.37 in 2019.
A decreasing debt-to-assets ratio suggests that Resideo is gradually relying less on debt financing and increasing its asset base relative to its debt obligations. This can be seen as a positive sign of financial health and stability, as lower debt levels generally indicate lower financial risk and better liquidity.
Overall, the decreasing trend in the debt-to-assets ratio for Resideo Technologies Inc reflects a prudent approach to managing its capital structure and signifies a potential improvement in the company's ability to meet its financial obligations in the long term.