Vontier Corp (VNT)
Debt-to-equity 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-equity ratio | 2.46 | 3.09 | 3.48 | 3.96 | 4.49 | 5.30 | 5.21 | 4.71 | 4.53 | 5.49 | 5.74 | 7.50 |
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 for Vontier Corporation has been showing a decreasing trend over the past eight quarters, indicating a reduction in the company's reliance on debt financing relative to its equity. The ratio decreased from 5.32 in Q3 2022 to 2.58 in Q4 2023. This decline suggests that the company has been effectively managing its debt levels and/or increasing its equity base during this period.
A lower debt-to-equity ratio is generally viewed favorably by investors and creditors as it signifies a lower financial risk and greater financial stability. Vontier's downward trend in this ratio could signify improved financial health and a more sustainable capital structure.
It is important to note that while a decreasing trend in the debt-to-equity ratio is positive, it is also essential to strike a balance between debt and equity to ensure adequate financial flexibility and optimal capital structure for the company's operations and growth strategies.
Peer comparison
Dec 31, 2023