Williams Companies Inc (WMB)
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 | 25,713,000 | 23,895,000 | 24,409,000 | 24,412,000 | 22,554,000 | 21,911,000 | 21,520,000 | 24,301,000 | 27,768,000 | 22,362,000 | 27,643,000 | 26,798,000 | 27,043,000 | 26,000,000 | 22,949,000 | 22,531,000 | 25,319,000 | 25,234,000 | 22,274,000 | 24,449,000 |
| Total stockholders’ equity | US$ in thousands | 12,402,000 | 11,845,000 | 11,679,000 | 11,785,000 | 11,485,000 | 11,319,000 | 11,226,000 | 11,316,000 | 11,423,000 | 11,198,000 | 11,512,000 | 11,702,000 | 11,769,000 | 12,065,000 | 12,212,000 | 12,354,000 | 13,363,000 | 13,621,000 | 13,848,000 | 14,406,000 |
| Debt-to-equity ratio | 2.07 | 2.02 | 2.09 | 2.07 | 1.96 | 1.94 | 1.92 | 2.15 | 2.43 | 2.00 | 2.40 | 2.29 | 2.30 | 2.15 | 1.88 | 1.82 | 1.89 | 1.85 | 1.61 | 1.70 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $25,713,000K ÷ $12,402,000K
= 2.07
The debt-to-equity ratio of Williams Cos Inc has shown a fluctuating trend over the past eight quarters. The ratio has ranged between 1.98 and 2.17, indicating that the company has maintained a relatively high level of debt relative to its equity throughout this period.
The highest ratio of 2.17 was observed in Q3 2023, suggesting a higher proportion of debt compared to equity at that point in time. However, the ratio has generally stayed above 2, reflecting a leverage position where the company relies more on debt financing than equity financing to fund its operations and investments.
It is important to monitor changes in the debt-to-equity ratio over time to assess the company's financial leverage and risk profile. A high ratio may indicate higher financial risk, as the company may struggle to meet its debt obligations in adverse market conditions. Conversely, a lower ratio could signify a more conservative capital structure with less reliance on debt funding.
Peer comparison
Dec 31, 2023