Visteon Corp (VC)
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 | 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-equity ratio | 0.31 | 0.50 | 0.68 | 0.90 | 0.72 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $318,000K ÷ $1,038,000K
= 0.31
The debt-to-equity ratio of Visteon Corp. has shown a decreasing trend over the past five years, indicating improved financial health in terms of leverage. The ratio decreased from 0.80 in 2019 to 0.32 in 2023. This suggests that the company has been relying less on debt financing in comparison to equity financing, which can be perceived positively by investors and creditors. A lower debt-to-equity ratio signifies a lower level of financial risk and a stronger ability to cover debt obligations using shareholder equity. Visteon Corp. has effectively managed its capital structure by reducing its reliance on debt, potentially improving its creditworthiness and overall financial stability.
Peer comparison
Dec 31, 2023