Westinghouse Air Brake Technologies Corp (WAB)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,480,000 | 3,288,000 | 3,751,000 | 4,056,000 | 3,792,000 |
| Total stockholders’ equity | US$ in thousands | 10,091,000 | 10,487,000 | 10,102,000 | 10,201,000 | 10,123,000 |
| Debt-to-capital ratio | 0.26 | 0.24 | 0.27 | 0.28 | 0.27 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,480,000K ÷ ($3,480,000K + $10,091,000K)
= 0.26
The debt-to-capital ratio of Westinghouse Air Brake Technologies Corp has shown a relatively stable trend over the past five years, ranging from 0.24 to 0.28. This ratio indicates the proportion of the company's capital that is financed through debt.
As of December 31, 2024, the debt-to-capital ratio stands at 0.26, reflecting that 26% of the company's capital structure is funded by debt. This suggests that Westinghouse Air Brake Technologies Corp has maintained a prudent balance between debt and equity financing.
Overall, the company's debt-to-capital ratio demonstrates a moderate level of leverage, which can be beneficial for optimizing the cost of capital and enhancing returns for shareholders. It is essential for investors and stakeholders to monitor this ratio to assess the company's financial risk and capacity to meet its debt obligations in the future.
Peer comparison
Dec 31, 2024