Vontier Corp (VNT)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,189,000 | 2,348,200 | 2,422,400 | 2,521,600 | 2,585,700 | 2,635,900 | 2,599,200 | 2,584,500 | 2,583,800 | 2,583,100 | 1,982,500 | 1,981,800 |
| Total stockholders’ equity | US$ in thousands | 890,400 | 759,500 | 696,500 | 636,300 | 576,500 | 497,300 | 499,300 | 548,200 | 569,900 | 470,600 | 345,500 | 264,300 |
| Debt-to-capital ratio | 0.71 | 0.76 | 0.78 | 0.80 | 0.82 | 0.84 | 0.84 | 0.83 | 0.82 | 0.85 | 0.85 | 0.88 |
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
The debt-to-capital ratio of Vontier Corporation has been on a generally decreasing trend over the past eight quarters, indicating a positive shift towards lower financial leverage. The ratio declined from 0.82 in Q4 2022 to 0.72 in Q4 2023, suggesting an improvement in the company's debt management and capital structure during this period.
The downward trend in the debt-to-capital ratio could signify that Vontier has been reducing its reliance on debt to finance its operations, which may reduce financial risk and enhance the company's overall financial health. However, it is important to note that even though the ratio has been declining, Vontier still maintains a significant level of debt relative to its capital.
Overall, the decreasing trend in the debt-to-capital ratio of Vontier Corporation indicates a positive development in the company's financial leverage and capital structure management over the specified period.
Peer comparison
Dec 31, 2023