Westinghouse Air Brake Technologies Corp (WAB)
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 | 3,288,000 | 3,751,000 | 4,056,000 | 3,792,000 | 4,333,600 |
| Total stockholders’ equity | US$ in thousands | 10,487,000 | 10,102,000 | 10,201,000 | 10,123,000 | 9,956,500 |
| Debt-to-capital ratio | 0.24 | 0.27 | 0.28 | 0.27 | 0.30 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,288,000K ÷ ($3,288,000K + $10,487,000K)
= 0.24
The debt-to-capital ratio of Westinghouse Air Brake Technologies Corp has remained relatively stable over the past five years, ranging between 0.28 and 0.31. This indicates that the company typically finances approximately 28% to 31% of its capital structure through debt, while the remainder is funded by equity. The consistency in the ratio suggests that Westinghouse Air Brake Technologies Corp has maintained a balanced mix of debt and equity in its capital structure, which may be viewed positively by investors and creditors as it indicates a prudent approach to managing financial leverage. The company's ability to keep its debt-to-capital ratio within a narrow range over time demonstrates a commitment to financial stability and responsible capital management.
Peer comparison
Dec 31, 2023