Stanley Black & Decker Inc (SWK)
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 | 6,101,000 | 5,352,900 | 4,353,600 | 4,245,400 | 3,176,400 |
| Total assets | US$ in thousands | 23,663,800 | 24,963,300 | 28,180,000 | 23,566,300 | 20,596,600 |
| Debt-to-assets ratio | 0.26 | 0.21 | 0.15 | 0.18 | 0.15 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,101,000K ÷ $23,663,800K
= 0.26
The debt-to-assets ratio of Stanley Black & Decker Inc has shown an increasing trend over the years, from 0.15 in 2019 to 0.26 in 2023. This indicates that the company's reliance on debt financing relative to its total assets has been on the rise.
A higher debt-to-assets ratio suggests that a larger portion of the company's assets is financed through debt rather than equity. While a moderate level of debt can be advantageous for leveraging and potentially higher returns, a continually increasing ratio may raise concerns about the company's financial health and ability to meet its debt obligations.
It is important for stakeholders to closely monitor this trend and assess the company's ability to manage its debt levels effectively to ensure sustainable growth and financial stability.
Peer comparison
Dec 31, 2023