Fortescue (ASX:FMG) Debt-to-Equity : 0.28 (As of Dec. 2023)

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What is Fortescue Debt-to-Equity?

Fortescue's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$245 Mil. Fortescue's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$7,700 Mil. Fortescue's Total Stockholders Equity for the quarter that ended in Dec. 2023 was A$28,943 Mil. Fortescue's debt to equity for the quarter that ended in Dec. 2023 was 0.27.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Fortescue's Debt-to-Equity or its related term are showing as below:

ASX:FMG' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.24 Med: 0.39 Max: 1.27
Current: 0.28

During the past 13 years, the highest Debt-to-Equity Ratio of Fortescue was 1.27. The lowest was 0.24. And the median was 0.39.

ASX:FMG's Debt-to-Equity is ranked worse than
63.93% of 1314 companies
in the Metals & Mining industry
Industry Median: 0.13 vs ASX:FMG: 0.28

Fortescue Debt-to-Equity Historical Data

The historical data trend for Fortescue's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Fortescue Debt-to-Equity Chart

Fortescue Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Debt-to-Equity

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0.37

0.39

0.24

0.35

0.30

Fortescue Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-Equity	Get a 7-Day Free Trial															0.29	0.35	0.36	0.30	0.28

Competitive Comparison of Fortescue's Debt-to-Equity

For the Other Industrial Metals & Mining subindustry, Fortescue's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Fortescue's Debt-to-Equity Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Fortescue's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Fortescue's Debt-to-Equity falls into.

Fortescue Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Fortescue's Debt to Equity Ratio for the fiscal year that ended in Jun. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(245.85	+	7682.44)	/	26803.61
	=	0.30

Fortescue's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(245.016	+	7700.076)	/	28943.262
	=	0.27

Fortescue (ASX:FMG) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Fortescue Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of Fortescue's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

Fortescue (ASX:FMG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Fortescue Ltd (ASX:FMG) » Definitions » Debt-to-Equity

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FSUMF:USA FSUGY:USA FVJ:Germany

Address

87 Adelaide Terrace, Level 2, East Perth, Perth, WA, AUS, 6004

Website

https://www.fortescue.com

Fortescue is an Australia-based iron ore miner. It has grown from obscurity start of 2008 to become the world's fourth-largest producer. Growth was fueled by debt, now repaid. Expansion from 55 million metric tons in fiscal 2012 to about 190 million metric tons in 2023 means Fortescue supplies nearly 10% of global seaborne iron ore. Further expansion above 200 million metric tons is likely once it completes construction of its 22 million metric tons Iron Bridge magnetite mine. However, with longer-term demand likely to decline as China's economy matures, we expect Fortescue's future margins to be below historical averages. More recently, Fortescue diversified into green energy, with ambitions to become a major supplier of green hydrogen and green ammonia. Its efforts are early stage.

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