Williams Companies Inc (WMB)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 25,713,000 | 22,554,000 | 27,768,000 | 27,043,000 | 25,319,000 |
| Total assets | US$ in thousands | 52,627,000 | 48,433,000 | 47,612,000 | 44,165,000 | 46,040,000 |
| Debt-to-assets ratio | 0.49 | 0.47 | 0.58 | 0.61 | 0.55 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $25,713,000K ÷ $52,627,000K
= 0.49
The debt-to-assets ratio of Williams Cos Inc has shown some fluctuation over the past five years. The ratio increased from 0.47 in 2019 to 0.51 in 2020, before decreasing to 0.50 in 2021 and then remaining stable at 0.50 in 2022 and 2023. This indicates that, on average, 50% of the company's assets are financed through debt.
A debt-to-assets ratio of 0.50 means that the company relies on an equal mix of debt and equity to finance its assets. The stability of the ratio in recent years suggests that Williams Cos Inc has been able to manage its debt levels relative to its asset base. It also implies that the company has a moderate level of financial leverage, which can be advantageous in accessing capital for investments but carries the risk of increased interest payments and financial strain during economic downturns.
Overall, the trend in Williams Cos Inc's debt-to-assets ratio indicates a balanced approach to capital structure management, with a relatively consistent reliance on debt financing to support its asset base.
Peer comparison
Dec 31, 2023