Visteon Corp (VC)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 318,000 | 323,000 | 327,000 | 331,000 | 336,000 | 340,000 | 349,000 | 349,000 | 349,000 | 349,000 | 349,000 | 349,000 | 349,000 | 348,000 | 748,000 | 748,000 | 348,000 | 348,000 | 348,000 | 348,000 |
| Total stockholders’ equity | US$ in thousands | 1,038,000 | 724,000 | 705,000 | 720,000 | 675,000 | 555,000 | 532,000 | 541,000 | 516,000 | 399,000 | 394,000 | 384,000 | 387,000 | 385,000 | 358,000 | 394,000 | 480,000 | 474,000 | 477,000 | 487,000 |
| Debt-to-capital ratio | 0.23 | 0.31 | 0.32 | 0.31 | 0.33 | 0.38 | 0.40 | 0.39 | 0.40 | 0.47 | 0.47 | 0.48 | 0.47 | 0.47 | 0.68 | 0.65 | 0.42 | 0.42 | 0.42 | 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 of Visteon Corp. has exhibited a decreasing trend over the past eight quarters, starting at 0.40 in Q1 2022 and reaching its lowest point at 0.24 in Q4 2023. This indicates that the company has been gradually reducing its reliance on debt to fund its operations and investments relative to its total capital.
A lower debt-to-capital ratio generally suggests a lower financial risk as it signifies a lower proportion of debt in the company's capital structure. It implies that Visteon Corp. has been able to finance a larger portion of its operations through equity or other non-debt sources, which could lead to lower interest expenses and improved financial stability.
The consistent decline in the debt-to-capital ratio over the observed period may indicate that Visteon Corp. has been managing its debt levels effectively or has been successful in generating sufficient internal funds to support its operations and growth without significantly increasing its debt burden. This trend could be viewed positively by investors and creditors as it may reflect a healthier financial position and sustainability in the long term.
However, it is essential to consider other financial metrics and factors in conjunction with the debt-to-capital ratio to gain a comprehensive understanding of Visteon Corp.'s overall financial health and risk profile.
Peer comparison
Dec 31, 2023