Stanley Black & Decker Inc (SWK)
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 | 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-equity ratio | 0.67 | 0.55 | 0.38 | 0.38 | 0.35 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,101,000K ÷ $9,056,100K
= 0.67
The debt-to-equity ratio of Stanley Black & Decker Inc has shown an increasing trend over the past five years, indicating a rising level of financial leverage. The ratio was 0.35 in 2019 and gradually increased to 0.67 by the end of 2023. This suggests that the company has been relying more on debt to finance its operations and growth compared to equity financing.
A higher debt-to-equity ratio may signify that the company is taking on more debt relative to its equity, which could potentially lead to higher financial risk. It is essential to monitor the company's ability to manage its debt levels effectively, as high leverage can impact the company's financial stability and flexibility, especially during economic downturns or challenging market conditions.
Investors and stakeholders should closely evaluate the company's debt management strategies, cash flow generation, and overall financial health to assess the sustainability of its capital structure and the ability to meet its debt obligations in the long term.
Peer comparison
Dec 31, 2023