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.