Whirlpool Corporation (WHR)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,683,000 | 2,362,000 | 2,336,000 | 4,846,000 | 3,885,000 |
| Debt-to-capital ratio | 0.64 | 0.73 | 0.76 | 0.50 | 0.57 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,758,000K ÷ ($4,758,000K + $2,683,000K)
= 0.64
Whirlpool Corporation's debt-to-capital ratio has fluctuated over the past five years, as per the data provided. The ratio decreased from 0.57 on December 31, 2020, to 0.50 on December 31, 2021, indicating a reduction in the proportion of debt relative to the company's capital structure. However, there was an increase in the ratio in the subsequent years, reaching 0.76 on December 31, 2022, and 0.73 on December 31, 2023. This suggests a higher reliance on debt financing during these periods.
In the most recent year of data available, December 31, 2024, the debt-to-capital ratio decreased slightly to 0.64. Despite this decrease, the ratio remains higher than the levels seen in 2021, indicating that Whirlpool Corporation still maintains a significant amount of debt relative to its total capital.
It is essential for investors and stakeholders to monitor the debt-to-capital ratio as it provides insights into the company's financial leverage and ability to meet its debt obligations. The fluctuations in Whirlpool Corporation's ratio over the years highlight the changing dynamics of its capital structure and the levels of financial risk associated with its debt levels.
Peer comparison
Dec 31, 2024