Stanley Black & Decker Inc (SWK)
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 | 6,101,000 | 5,352,900 | 4,353,600 | 4,245,400 | 3,176,400 |
| Total stockholders’ equity | US$ in thousands | 9,056,100 | 9,712,100 | 11,590,500 | 11,059,600 | 9,136,300 |
| Debt-to-capital ratio | 0.40 | 0.36 | 0.27 | 0.28 | 0.26 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,101,000K ÷ ($6,101,000K + $9,056,100K)
= 0.40
The debt-to-capital ratio of Stanley Black & Decker Inc has been gradually increasing over the past five years, reflecting a higher proportion of debt in the company's capital structure. In particular, the ratio has risen from 0.26 in 2019 to 0.40 in 2023. This suggests that the company has been relying more on debt financing relative to its total capital base.
A higher debt-to-capital ratio could indicate increased financial risk for the company, as it implies a larger obligation to service debt payments. However, it may also indicate that the company is leveraging debt to fund growth opportunities or take advantage of favorable interest rates.
It is important for investors and stakeholders to closely monitor changes in the debt-to-capital ratio over time to assess the company's financial health and sustainability of its capital structure.
Peer comparison
Dec 31, 2023