Whirlpool Corporation (WHR)
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 | 6,414,000 | 7,363,000 | 4,929,000 | 5,059,000 | 4,140,000 |
| Total stockholders’ equity | US$ in thousands | 2,362,000 | 2,336,000 | 4,846,000 | 3,885,000 | 3,195,000 |
| Debt-to-capital ratio | 0.73 | 0.76 | 0.50 | 0.57 | 0.56 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,414,000K ÷ ($6,414,000K + $2,362,000K)
= 0.73
The debt-to-capital ratio of Whirlpool Corp. has fluctuated over the past five years, ranging from 0.52 to 0.77. In 2023, the ratio decreased to 0.75 from 0.77 in 2022, indicating a slight improvement in the company's capital structure. However, the ratio remains relatively high compared to the lower levels seen in 2021 and 2020.
A debt-to-capital ratio of 0.75 implies that 75% of Whirlpool's capital structure is financed by debt, while the remaining 25% is contributed by equity. This indicates a moderately high reliance on debt financing, which can increase financial risk and debt servicing obligations. It is important for investors and stakeholders to monitor changes in this ratio over time to assess the company's leverage and financial health.
Peer comparison
Dec 31, 2023