Visteon Corp (VC)
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 | 318,000 | 336,000 | 349,000 | 349,000 | 348,000 |
| Total stockholders’ equity | US$ in thousands | 1,038,000 | 675,000 | 516,000 | 387,000 | 480,000 |
| Debt-to-capital ratio | 0.23 | 0.33 | 0.40 | 0.47 | 0.42 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $318,000K ÷ ($318,000K + $1,038,000K)
= 0.23
The debt-to-capital ratio for Visteon Corp. has been showing a declining trend over the past five years, decreasing from 0.45 in 2019 to 0.24 in 2023. This indicates that the company has been reducing its reliance on debt financing relative to its total capital structure. A lower debt-to-capital ratio suggests a lower financial risk and a stronger financial position, as the company is relying more on equity financing.
The decreasing trend in the debt-to-capital ratio could be a positive sign for investors and creditors, as it shows that the company is managing its debt levels effectively and may have improved its financial stability over the years. However, it is important to consider other factors such as the overall economic environment and industry dynamics when assessing the financial health of Visteon Corp.
Peer comparison
Dec 31, 2023