NCR Voyix Corporation (VYX)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,563,000 | 5,552,000 | 5,505,000 | 3,270,000 | 3,277,000 |
| Total stockholders’ equity | US$ in thousands | 25,000 | 1,480,000 | 1,256,000 | 1,048,000 | 1,104,000 |
| Debt-to-capital ratio | 0.99 | 0.79 | 0.81 | 0.76 | 0.75 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,563,000K ÷ ($2,563,000K + $25,000K)
= 0.99
The debt-to-capital ratio of NCR Voyix Corporation has shown an increasing trend over the past five years, starting at 0.75 in 2019 and reaching 0.99 in 2023. This indicates that the company has been relying more heavily on debt to finance its operations and investments relative to its total capital structure.
The ratio exceeding 1 would suggest that the company's debts exceed its total capital, which may raise concerns about financial risk and sustainability. However, even though the ratio has increased over the years, it has not yet crossed the critical threshold of 1.
It is crucial for investors and stakeholders to monitor this trend closely as a high debt-to-capital ratio can signify potential difficulties in meeting debt obligations and may affect the company's creditworthiness. Management should focus on maintaining a balanced capital structure to ensure long-term financial health and stability.