Resideo Technologies Inc (REZI)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,749,000 | 2,529,000 | 2,252,000 | 1,993,000 | 1,602,000 |
| Debt-to-capital ratio | 0.34 | 0.36 | 0.35 | 0.37 | 0.42 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,396,000K ÷ ($1,396,000K + $2,749,000K)
= 0.34
The debt-to-capital ratio of Resideo Technologies Inc has shown a decreasing trend over the past five years, declining from 0.54 in 2019 to 0.44 in 2023. This ratio indicates the proportion of the company's capital structure that is financed by debt, with a lower ratio suggesting lower financial risk as a smaller portion is reliant on debt financing. The decreasing trend in the debt-to-capital ratio can be viewed positively as it may signify a more conservative approach to debt management and potentially improved financial stability for the company. However, it is essential to monitor this ratio over time to ensure that the company maintains a healthy balance between debt and equity in its capital structure.