Westinghouse Air Brake Technologies Corp (WAB)
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 | 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-equity ratio | 0.31 | 0.37 | 0.40 | 0.37 | 0.44 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,288,000K ÷ $10,487,000K
= 0.31
The debt-to-equity ratio of Westinghouse Air Brake Technologies Corp has shown a decreasing trend over the past five years, declining from 0.44 in 2019 to 0.39 in 2023. This indicates that the company has been relying less on debt financing compared to equity financing. A lower debt-to-equity ratio suggests a lower financial risk and a stronger financial position, as the company is using a lower proportion of debt to finance its operations and growth. Overall, the decreasing trend in the debt-to-equity ratio reflects positively on the company's financial health and stability.
Peer comparison
Dec 31, 2023