Molson Coors Brewing Co Class B (TAP)
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 | 5,312,100 | 6,165,200 | 6,647,200 | 7,208,200 | 8,109,500 |
| Total stockholders’ equity | US$ in thousands | 13,196,000 | 12,689,700 | 13,417,100 | 12,365,000 | 13,419,400 |
| Debt-to-capital ratio | 0.29 | 0.33 | 0.33 | 0.37 | 0.38 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,312,100K ÷ ($5,312,100K + $13,196,000K)
= 0.29
The debt-to-capital ratio of Molson Coors Beverage Company has shown a decreasing trend over the past five years, declining from 0.40 in 2019 to 0.32 in 2023. This indicates that the company has been able to reduce its reliance on debt financing relative to its total capital structure. A lower debt-to-capital ratio suggests a healthier balance sheet and lower financial risk, as the company is relying less on borrowing to fund its operations and investments. It also signifies that Molson Coors Beverage Company's equity financing has become relatively more significant compared to its debt financing. Overall, the decreasing trend in the debt-to-capital ratio reflects a positive development in the company's financial leverage and stability over the years.
Peer comparison
Dec 31, 2023