Westinghouse Air Brake Technologies Corp (WAB)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,288,000 | 3,751,000 | 4,056,000 | 3,792,000 | 4,333,600 |
| Total assets | US$ in thousands | 18,988,000 | 18,516,000 | 18,454,000 | 18,454,000 | 18,944,200 |
| Debt-to-assets ratio | 0.17 | 0.20 | 0.22 | 0.21 | 0.23 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,288,000K ÷ $18,988,000K
= 0.17
The debt-to-assets ratio of Westinghouse Air Brake Technologies Corp has shown a decreasing trend over the past five years, decreasing from 0.23 in 2019 to 0.21 in 2023. This indicates that the company has been progressively reducing its reliance on debt to finance its assets.
A decreasing debt-to-assets ratio can suggest improved financial stability and lower financial risk, as it implies that a lower proportion of the company's assets are financed by debt. It may also indicate effective management of the company's capital structure and debt levels.
However, it is essential to consider other factors such as industry norms, economic conditions, and the company's specific circumstances when interpreting this ratio. Overall, the decreasing trend in Westinghouse Air Brake Technologies Corp's debt-to-assets ratio signifies a positive development in its financial leverage and potentially improved financial health.
Peer comparison
Dec 31, 2023