NCR Voyix Corporation (VYX)
Debt-to-equity 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-equity ratio | 102.52 | 3.75 | 4.38 | 3.12 | 2.97 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,563,000K ÷ $25,000K
= 102.52
The debt-to-equity ratio of NCR Voyix Corporation has exhibited significant fluctuations over the past five years. In 2023, the ratio surged to 102.52, indicating that the company's level of debt relative to equity has substantially increased compared to the previous year. This sharp rise in the ratio suggests a heightened reliance on debt financing, which may pose potential risks in terms of financial stability and solvency.
In the preceding years, the debt-to-equity ratio had shown a decreasing trend from 2019 to 2022, indicating a gradual reduction in the company's debt levels relative to its equity. However, the ratio remained above 1 during this period, signifying that the company had more debt than equity to finance its operations.
The fluctuating nature of the debt-to-equity ratio implies a varying capital structure for NCR Voyix Corporation, with implications for its financial risk and leverage. Investors and stakeholders may closely monitor the company's debt management strategies and overall financial health to assess its ability to meet financial obligations and sustain long-term growth.