Smurfit WestRock plc (SW)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,560,000 | 5,025,000 | 4,379,000 | 3,770,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $5,560,000K)
= 0.00
The data provided indicates that Smurfit WestRock plc had a debt-to-capital ratio of 0.00 for the years ending December 31, 2020, 2021, 2022, and 2023. A debt-to-capital ratio of 0.00 signifies that the company had no debt in relation to its capital structure during these periods.
A debt-to-capital ratio of 0.00 could be interpreted in several ways. It may suggest that the company does not rely on debt financing to fund its operations and growth, instead choosing to finance its activities primarily through equity or retained earnings. This may indicate a conservative approach to managing leverage and financial risk.
On the other hand, a debt-to-capital ratio of 0.00 could also signal that the company has a very small amount of debt compared to its total capital, which may not significantly impact its overall financial position. In this case, the company may have a strong balance sheet with a high level of equity relative to debt.
Overall, a consistent debt-to-capital ratio of 0.00 over multiple years indicates that Smurfit WestRock plc has maintained a debt-free capital structure, which may be viewed positively by investors and other stakeholders in terms of financial stability and risk management.
Peer comparison
Dec 31, 2023