Vontier Corp (VNT)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,189,000 | 2,585,700 | 2,583,800 | 1,795,300 |
| Total assets | US$ in thousands | 4,294,000 | 4,343,300 | 4,349,800 | 3,073,000 |
| Debt-to-assets ratio | 0.51 | 0.60 | 0.59 | 0.58 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,189,000K ÷ $4,294,000K
= 0.51
The debt-to-assets ratio measures the proportion of a company's assets that are financed with debt. A declining trend in the debt-to-assets ratio indicates a decreasing reliance on debt for funding assets. In the case of Vontier Corporation, the ratio has fluctuated over the past five years, ranging from 0.01 to 0.60.
In 2019, Vontier had a very low debt-to-assets ratio of 0.01, suggesting minimal debt relative to its assets. However, in subsequent years, the ratio increased steadily, reaching 0.60 in 2022. This sharp increase indicates a significant rise in debt relative to assets that year.
In 2023, the ratio decreased to 0.53, showing a slight improvement in the company's debt structure. While the ratio remains above the 2019 level, the decreasing trend from 2022 suggests that Vontier may be working towards optimizing its debt levels and asset financing.
Overall, a debt-to-assets ratio of 0.53 in 2023 suggests that approximately 53% of Vontier Corporation's assets are funded by debt. Monitoring this ratio can provide insights into the company's capital structure, financial risk, and ability to meet its debt obligations. Further analysis of Vontier's financial performance and leverage strategies would provide a more holistic view of its debt management practices.
Peer comparison
Dec 31, 2023