Whirlpool Corporation (WHR)
Debt-to-equity 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-equity ratio | 2.72 | 3.15 | 1.02 | 1.30 | 1.30 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,414,000K ÷ $2,362,000K
= 2.72
The debt-to-equity ratio of Whirlpool Corp. has fluctuated over the past five years, indicating the company's changing capital structure and financial leverage. The ratio increased from 1.56 in 2019 to 3.26 in 2022, signifying a significant rise in the proportion of debt relative to equity during this period. However, in 2023, the ratio decreased to 3.06, albeit remaining at a relatively high level compared to earlier years.
A high debt-to-equity ratio suggests that Whirlpool Corp. relies more heavily on debt financing, which can potentially increase financial risk due to interest payments and debt obligations. On the other hand, a low ratio may indicate a conservative financial strategy with a higher reliance on equity funding.
Overall, the trend in Whirlpool Corp.'s debt-to-equity ratio implies a varying degree of financial leverage and risk management over the years, highlighting the importance of monitoring the company's capital structure and debt levels to assess its financial health and stability.
Peer comparison
Dec 31, 2023