Whirlpool Corporation (WHR)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,758,000 | 6,414,000 | 7,363,000 | 4,929,000 | 5,059,000 |
| Total assets | US$ in thousands | 16,301,000 | 17,312,000 | 17,124,000 | 20,285,000 | 20,436,000 |
| Debt-to-assets ratio | 0.29 | 0.37 | 0.43 | 0.24 | 0.25 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,758,000K ÷ $16,301,000K
= 0.29
The debt-to-assets ratio of Whirlpool Corporation has shown some fluctuation over the past five years. As of December 31, 2020, the ratio was 0.25, indicating that the company had $0.25 in debt for every $1 in assets. The ratio decreased slightly to 0.24 by December 31, 2021, suggesting a slightly more conservative capital structure.
However, by December 31, 2022, the debt-to-assets ratio increased significantly to 0.43, which may indicate that the company took on more debt relative to its total assets. This increase in leverage could potentially pose higher financial risk for the company.
In the subsequent years, the ratio decreased to 0.37 as of December 31, 2023, and further to 0.29 by December 31, 2024. Although still higher than the ratio in 2021, these decreases suggest that the company may have taken steps to manage its debt levels and improve the balance between debt and assets.
In conclusion, the fluctuation in Whirlpool Corporation's debt-to-assets ratio over the analyzed period highlights the importance of carefully monitoring and managing the company's debt levels to maintain a healthy financial position.
Peer comparison
Dec 31, 2024