Sensata Technologies Holding NV (ST)
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 | 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-equity ratio | 1.13 | 1.27 | 1.36 | 1.19 | 1.25 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,373,990K ÷ $2,996,280K
= 1.13
The debt-to-equity ratio of Sensata Technologies Holding Plc has shown a fluctuating trend over the past five years. The ratio decreased from 1.48 in 2020 to 1.26 in 2019, indicating a reduction in debt relative to equity. However, there was an increase in the ratio to 1.37 in 2021, followed by a further increase to 1.36 in 2022.
Notably, in the latest financial year ending December 31, 2023, the debt-to-equity ratio improved to 1.13, suggesting a lower reliance on debt financing compared to equity. This positive change may indicate that the company has managed its debt levels more effectively, potentially reducing financial risk and enhancing its financial stability.
It is important to continue monitoring this ratio in the future to assess the company's capital structure and its ability to meet financial obligations sustainably.
Peer comparison
Dec 31, 2023