Silgan Holdings Inc (SLGN)
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 | 2,546,450 | 3,345,380 | 3,772,930 | 3,223,220 | 2,214,610 |
| Total stockholders’ equity | US$ in thousands | 1,889,360 | 1,718,260 | 1,562,700 | 1,252,870 | 1,023,320 |
| Debt-to-capital ratio | 0.57 | 0.66 | 0.71 | 0.72 | 0.68 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,546,450K ÷ ($2,546,450K + $1,889,360K)
= 0.57
The debt-to-capital ratio for Silgan Holdings Inc. has exhibited a downward trend over the past five years, decreasing from 0.69 in 2019 to 0.64 in 2023. This indicates that the company has been steadily reducing its reliance on debt to fund its operations and investments relative to its total capital structure.
A lower debt-to-capital ratio is usually seen as a positive sign by investors and creditors, as it suggests a lower level of financial risk and leverage for the company. This trend implies that Silgan Holdings Inc. has been managing its debt levels effectively, either by paying down debt, increasing equity, or a combination of both.
However, it is important to note that a debt-to-capital ratio of 0.64 in 2023 still indicates that a significant portion of Silgan Holdings Inc.'s capital structure is financed by debt. It would be beneficial for investors and stakeholders to monitor this ratio in future periods to ensure that the company maintains a sustainable and prudent level of leverage.
Peer comparison
Dec 31, 2023