Williams Companies Inc (WMB)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 12,402,000 | 11,485,000 | 11,423,000 | 11,769,000 | 13,363,000 |
| Debt-to-capital ratio | 0.67 | 0.66 | 0.71 | 0.70 | 0.65 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $25,713,000K ÷ ($25,713,000K + $12,402,000K)
= 0.67
The debt-to-capital ratio of Williams Cos Inc has been fairly stable over the past five years, ranging between 0.63 and 0.68. This ratio indicates the proportion of the company's capital structure that is comprised of debt, with the remaining portion being equity.
The consistent range of the debt-to-capital ratio suggests that Williams Cos Inc has maintained a balanced mix of debt and equity financing in its capital structure over the years. A ratio of around 0.67 signifies that debt represents approximately 67% of the company's total capital, while equity constitutes the remaining 33%.
Overall, the stability of the debt-to-capital ratio indicates that Williams Cos Inc has been managing its debt levels effectively relative to its total capital, demonstrating a moderate reliance on debt financing to support its operations and investments.
Peer comparison
Dec 31, 2023