Whirlpool Corporation (WHR)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,414,000 | 7,363,000 | 4,929,000 | 5,059,000 | 4,140,000 |
| Total assets | US$ in thousands | 17,312,000 | 17,124,000 | 20,285,000 | 20,436,000 | 18,973,000 |
| Debt-to-assets ratio | 0.37 | 0.43 | 0.24 | 0.25 | 0.22 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,414,000K ÷ $17,312,000K
= 0.37
Whirlpool Corp.'s debt-to-assets ratio has shown fluctuations over the past five years. In 2023, the ratio decreased to 0.42 from 0.44 in 2022, indicating that the company relied less on debt financing relative to its total assets. Despite this decrease, the ratio remains relatively high compared to the levels seen in 2021, 2020, and 2019, where it was consistently around 0.26.
A decreasing trend in the debt-to-assets ratio can suggest improved financial health and lower financial risk for the company, as it indicates a decreasing reliance on debt to fund its assets. However, a high debt-to-assets ratio may also indicate that the company has a significant amount of debt compared to its asset base, which can potentially lead to higher financial leverage and increased risk, especially during economic downturns or periods of financial instability.
It would be important for stakeholders to further analyze Whirlpool's financial position, debt structure, and overall business performance to gain a more nuanced understanding of the implications of the debt-to-assets ratio fluctuations over the years.
Peer comparison
Dec 31, 2023