Sealed Air Corporation (SEE)
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 | 20,100 | 23,600 | 25,700 | 24,900 | 30,900 |
| Total stockholders’ equity | US$ in thousands | 549,500 | 344,100 | 248,700 | 172,500 | -196,200 |
| Debt-to-capital ratio | 0.04 | 0.06 | 0.09 | 0.13 | — |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $20,100K ÷ ($20,100K + $549,500K)
= 0.04
Sealed Air Corp.'s debt-to-capital ratio has exhibited a declining trend over the five-year period from 2019 to 2023. The ratio decreased from 1.05 in 2019 to 0.90 in 2023. This indicates a relative reduction in the proportion of debt used to finance the company's operations compared to the total capital structure.
A decreasing trend in the debt-to-capital ratio is generally viewed positively, as it suggests that the company may be reducing its reliance on debt financing in favor of other sources of capital, such as equity. This could potentially lead to lower interest expenses and reduced financial risk for the company.
However, it is important to note that a debt-to-capital ratio of 0.90 in 2023 still indicates that Sealed Air Corp. relies significantly on debt to fund its operations, representing 90% of its capital structure. While the decreasing trend is favorable, investors and analysts may still monitor the company's debt management strategies to ensure that it maintains a sustainable and balanced capital structure in the future.
Peer comparison
Dec 31, 2023