Resideo Technologies Inc (REZI)
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 | 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-equity ratio | 0.51 | 0.56 | 0.54 | 0.58 | 0.72 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,396,000K ÷ $2,749,000K
= 0.51
The debt-to-equity ratio of Resideo Technologies Inc has shown a declining trend over the past five years, indicating a positive development in the company's capital structure. The ratio decreased from 1.19 in 2019 to 0.78 in 2023, reflecting a reduction in the proportion of debt relative to equity used to finance the company's operations.
A decreasing trend in the debt-to-equity ratio can be a sign of improving financial health and lower financial risk for the company, as it suggests a decreasing reliance on debt financing and a stronger equity base. This trend may indicate that the company is effectively managing its debt levels and optimizing its capital structure.
Overall, the decreasing debt-to-equity ratio for Resideo Technologies Inc over the five-year period signifies a positive financial trajectory in terms of prudent debt management and a stronger balance between debt and equity in the company's capital structure.