Vontier Corp (VNT)
Debt-to-equity 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-equity ratio | 2.46 | 4.49 | 4.53 | 9.56 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,189,000K ÷ $890,400K
= 2.46
The debt-to-equity ratio of Vontier Corporation has shown fluctuations over the past five years. The ratio indicates the proportion of debt used to finance the company's operations compared to shareholders' equity. A higher debt-to-equity ratio suggests that the company is relying more on borrowed funds for its operations, while a lower ratio indicates a stronger reliance on equity financing.
In 2019, Vontier had a very low debt-to-equity ratio of 0.02, indicating a minimal level of debt relative to equity. However, this ratio surged in 2020 to 9.62, implying a significant increase in debt usage compared to equity. Subsequently, the company managed to reduce this ratio over the following years, with values of 4.54, 4.49, and 2.58 in 2021, 2022, and 2023, respectively.
The significant fluctuations in the debt-to-equity ratio of Vontier Corporation over the analyzed period may suggest shifts in the company's financial structure and management of capital. It is important for stakeholders to closely monitor these changes to assess the company's financial risk, leverage levels, and long-term sustainability.
Peer comparison
Dec 31, 2023