Vontier Corp (VNT)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 890,400 | 576,500 | 569,900 | 187,800 |
| Debt-to-capital ratio | 0.71 | 0.82 | 0.82 | 0.91 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,189,000K ÷ ($2,189,000K + $890,400K)
= 0.71
Vontier Corporation's debt-to-capital ratio has exhibited fluctuations over the past five years. As of December 31, 2019, the company had a significantly low ratio of 0.02, indicating a minimal level of debt relative to its capital structure. However, there was a substantial increase in this ratio to 0.91 by the end of 2020, suggesting a significant rise in debt compared to capital.
Subsequently, in 2021 and 2022, Vontier Corporation maintained a debt-to-capital ratio of 0.82, indicating a relatively stable level of debt as a proportion of its total capital. Notably, by the end of 2023, the company managed to reduce this ratio to 0.72, which may imply a more conservative approach towards debt utilization or a strengthening of its capital base.
Overall, the trend in Vontier Corporation's debt-to-capital ratio highlights the importance of monitoring the company's leverage position and capital structure management over time. A decreasing ratio may indicate improved financial health and reduced financial risk, while an increasing ratio could signal greater reliance on debt financing, which may warrant further analysis to assess the company's debt sustainability and financial stability.
Peer comparison
Dec 31, 2023