Whirlpool Corporation (WHR)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,414,000 | 6,341,000 | 6,393,000 | 7,382,000 | 7,363,000 | 4,722,000 | 4,831,000 | 4,631,000 | 4,929,000 | 4,961,000 | 5,001,000 | 4,982,000 | 5,059,000 | 4,965,000 | 4,886,000 | 4,662,000 | 4,140,000 | 4,105,000 | 4,155,000 | 4,137,000 |
| Total stockholders’ equity | US$ in thousands | 2,362,000 | 2,064,000 | 2,018,000 | 2,061,000 | 2,336,000 | 4,178,000 | 4,036,000 | 4,575,000 | 4,846,000 | 4,964,000 | 4,951,000 | 4,222,000 | 3,885,000 | 3,371,000 | 3,018,000 | 3,060,000 | 3,195,000 | 3,028,000 | 2,749,000 | 2,802,000 |
| Debt-to-capital ratio | 0.73 | 0.75 | 0.76 | 0.78 | 0.76 | 0.53 | 0.54 | 0.50 | 0.50 | 0.50 | 0.50 | 0.54 | 0.57 | 0.60 | 0.62 | 0.60 | 0.56 | 0.58 | 0.60 | 0.60 |
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 been relatively stable in recent quarters, hovering around 0.79 in Q3, Q2, and Q1 of 2023. This indicates that the company finances approximately 79% of its capital structure through debt. The ratio increased from 0.54 in Q3 2022 to 0.77 in Q4 2022 but has generally remained around the 0.75 to 0.79 range throughout the past year.
A higher debt-to-capital ratio suggests that the company is more leveraged and has a higher level of financial risk, as it relies more heavily on debt to fund its operations and growth. However, a certain level of debt can be healthy for a company, as it can provide tax benefits and allow for strategic investments.
It is important for investors and analysts to monitor the debt-to-capital ratio over time to assess the company's financial health and risk profile. In the case of Whirlpool Corp., the relatively stable ratio indicates that the company has been managing its debt levels consistently, but further analysis of its overall financial health, cash flow, and debt repayment capacity would provide a more comprehensive view.
Peer comparison
Dec 31, 2023