Williams Companies Inc (WMB)
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 | 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-equity ratio | 2.07 | 1.96 | 2.43 | 2.30 | 1.89 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $25,713,000K ÷ $12,402,000K
= 2.07
Williams Cos Inc has shown a fluctuating trend in its debt-to-equity ratio over the past five years. The ratio has increased from 1.67 in 2019 to 2.13 in 2023, indicating a higher reliance on debt to finance its operations and investments compared to equity. This upward trend suggests that the company's debt levels have been increasing relative to its equity levels, which could potentially indicate a higher financial risk and leverage for the company. It is crucial for investors and stakeholders to closely monitor this ratio to assess the company's ability to manage its debt obligations and financial health effectively.
Peer comparison
Dec 31, 2023