Whirlpool Corporation (WHR)
Debt-to-equity 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-equity ratio | 2.72 | 3.07 | 3.17 | 3.58 | 3.15 | 1.13 | 1.20 | 1.01 | 1.02 | 1.00 | 1.01 | 1.18 | 1.30 | 1.47 | 1.62 | 1.52 | 1.30 | 1.36 | 1.51 | 1.48 |
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 been fluctuating over the past several quarters, ranging from a low of 1.13 in Q1 2022 to a high of 3.83 in Q2 2023. This ratio measures the proportion of the company's total liabilities to its shareholders' equity, indicating the level of financial leverage in the company's capital structure.
The ratio exceeding 1 indicates that the company has more debt than equity, which can be a sign of higher financial risk. The increasing trend seen from Q1 2023 to Q2 2023 suggests that Whirlpool has been relying more on debt financing relative to equity. However, it is important to note that a higher debt-to-equity ratio alone does not necessarily indicate financial instability, as it depends on the industry standards and the company's ability to service its debt obligations.
The significant fluctuations in the debt-to-equity ratio over the quarters could be due to various factors such as acquisitions, divestitures, or changes in capital structure decisions. Investors and stakeholders should closely monitor this ratio along with other financial indicators to assess Whirlpool's overall financial health and risk profile.
Peer comparison
Dec 31, 2023