Sensata Technologies Holding NV (ST)
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 | 3,373,990 | 3,958,930 | 4,214,950 | 3,213,750 | 3,219,880 |
| Total assets | US$ in thousands | 7,680,990 | 8,756,220 | 8,613,770 | 7,844,200 | 6,834,520 |
| Debt-to-assets ratio | 0.44 | 0.45 | 0.49 | 0.41 | 0.47 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,373,990K ÷ $7,680,990K
= 0.44
The debt-to-assets ratio of Sensata Technologies Holding Plc has exhibited a declining trend over the past five years, indicating a relatively favorable position in terms of debt management and asset coverage.
As of December 31, 2023, the debt-to-assets ratio stood at 0.44, showing a decrease from 0.48 in the previous year (2022) and a more significant reduction from 0.51 in 2020. This downward trend suggests that the company has been successful in reducing its reliance on debt financing in relation to its total assets.
Comparing the current ratio to 2019, where it was also 0.48, it indicates that the company has effectively managed its debt load to remain at a lower level in recent years.
A lower debt-to-assets ratio signifies that Sensata Technologies Holding Plc has a greater proportion of assets financed by equity rather than debt, which may indicate a lower financial risk and stronger financial health. The company may have improved its capital structure, reduced debt levels, or increased asset value during the period under review.
Overall, the declining trend in the debt-to-assets ratio of Sensata Technologies Holding Plc suggests a positive trajectory in terms of its debt management strategy and asset utilization.
Peer comparison
Dec 31, 2023