Sensata Technologies Holding NV (ST)

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	3,373,990	3,958,930	4,214,950	3,213,750	3,219,880
Total stockholders’ equity	US$ in thousands	2,996,280	3,110,810	3,094,730	2,705,490	2,573,760
Debt-to-capital ratio		0.53	0.56	0.58	0.54	0.56

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,373,990K ÷ ($3,373,990K + $2,996,280K)
= 0.53

The debt-to-capital ratio of Sensata Technologies Holding Plc has shown a decreasing trend over the past five years. As of December 31, 2023, the ratio stands at 0.53, indicating that 53% of the company's capital structure is financed by debt, while the remaining 47% is financed by equity. This represents an improvement from the previous year's ratio of 0.58.

The decreasing trend in the debt-to-capital ratio suggests that Sensata Technologies Holding Plc has been reducing its reliance on debt financing relative to its total capital structure. This can be viewed positively as lower debt levels generally indicate lower financial risk and increased financial stability.

It is worth noting that although the debt-to-capital ratio has fluctuated slightly over the years, it has generally remained within a relatively stable range, indicating a consistent approach to managing the company's capital structure. Overall, the downward trend in the debt-to-capital ratio suggests improving financial health and risk management for Sensata Technologies Holding Plc.