Whirlpool Corporation (WHR)
Debt-to-equity 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-equity ratio | 1.77 | 2.72 | 3.15 | 1.02 | 1.30 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,758,000K ÷ $2,683,000K
= 1.77
The debt-to-equity ratio of Whirlpool Corporation has fluctuated over the past five years.
As of December 31, 2020, the ratio stood at 1.30, indicating that the company had $1.30 in debt for every $1 of equity.
By December 31, 2021, the ratio had decreased to 1.02, suggesting a reduction in financial leverage and a more balanced capital structure.
In the following years, the debt-to-equity ratio increased significantly, reaching 3.15 by December 31, 2022, and 2.72 by December 31, 2023. These higher ratios may signal a higher reliance on debt financing relative to equity.
However, by December 31, 2024, the ratio had decreased to 1.77, indicating a potential effort to lower debt levels or increase equity to improve financial stability and reduce risk.
In conclusion, the fluctuation in Whirlpool Corporation's debt-to-equity ratio over the years reflects varying levels of debt and equity in the company's capital structure, which can impact its financial risk and solvency.
Peer comparison
Dec 31, 2024