Vontier Corp (VNT)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,092,000 | 2,189,000 | 2,585,700 | 2,583,800 | 1,795,300 |
| Total stockholders’ equity | US$ in thousands | 1,051,100 | 890,400 | 576,500 | 569,900 | 187,800 |
| Debt-to-capital ratio | 0.67 | 0.71 | 0.82 | 0.82 | 0.91 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,092,000K ÷ ($2,092,000K + $1,051,100K)
= 0.67
The debt-to-capital ratio for Vontier Corp has shown a declining trend over the past five years, starting at 0.91 on December 31, 2020, and decreasing to 0.67 by December 31, 2024. This indicates that the company has been able to reduce its reliance on debt to finance its operations and investments in relation to its total capital structure. A decreasing debt-to-capital ratio is generally viewed positively by investors and creditors as it suggests improved financial health and lower risk of default. Vontier Corp's decreasing trend in this ratio suggests a more conservative capital structure and potentially better financial flexibility compared to earlier years.
Peer comparison
Dec 31, 2024