Westinghouse Air Brake Technologies Corp (WAB)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,288,000 | 3,288,000 | 3,401,000 | 3,189,000 | 3,751,000 | 3,824,000 | 3,987,000 | 4,225,000 | 4,056,000 | 4,067,200 | 4,079,600 | 3,923,300 | 3,792,000 | 3,799,900 | 3,768,700 | 4,655,100 | 4,333,600 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 10,487,000 | 10,326,000 | 10,188,000 | 10,085,000 | 10,102,000 | 9,881,000 | 9,905,000 | 10,049,000 | 10,201,000 | 10,156,600 | 10,294,400 | 10,144,100 | 10,123,000 | 10,016,900 | 9,845,600 | 9,761,800 | 9,956,500 | 9,696,400 | 9,801,760 | 9,687,850 |
| Debt-to-capital ratio | 0.24 | 0.24 | 0.25 | 0.24 | 0.27 | 0.28 | 0.29 | 0.30 | 0.28 | 0.29 | 0.28 | 0.28 | 0.27 | 0.28 | 0.28 | 0.32 | 0.30 | 0.00 | 0.00 | 0.00 |
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 been relatively stable over the past several quarters, hovering around the range of 0.28 to 0.30. This ratio indicates that the company relies on debt for approximately 28% to 30% of its total capital structure, with the remainder funded by equity.
Maintaining a consistent debt-to-capital ratio suggests that the company has a balanced approach to financing its operations, not being overly reliant on debt or equity. A ratio between 0.25 and 0.30 is generally considered healthy, indicating that the company is managing its debt levels effectively without taking on excessive financial risk.
Overall, based on the trend of the debt-to-capital ratio for Westinghouse Air Brake Technologies Corp, it appears that the company has a solid capital structure that is well-managed and sustainable in the long term.
Peer comparison
Dec 31, 2023