Magna International (Magna International) Debt-to-Equity

: 0.61 (As of Dec. 2023)

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Magna International's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,729 Mil. Magna International's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $5,494 Mil. Magna International's Total Stockholders Equity for the quarter that ended in Dec. 2023 was $11,884 Mil. Magna International's debt to equity for the quarter that ended in Dec. 2023 was 0.61.

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 Magna International's Debt-to-Equity or its related term are showing as below:

MGA' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.12 Med: 0.44 Max: 0.61
Current: 0.61

During the past 13 years, the highest Debt-to-Equity Ratio of Magna International was 0.61. The lowest was 0.12. And the median was 0.44.

MGA's Debt-to-Equity is ranked worse than
58.64% of 1175 companies
in the Vehicles & Parts industry
Industry Median: 0.48 vs MGA: 0.61

Magna International Debt-to-Equity Historical Data

The historical data trend for Magna International'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.

Magna International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

0.46

0.53

0.48

0.46

0.61

Magna International Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-Equity																0.46	0.61	0.65	0.63	0.61

Competitive Comparison

For the Auto Parts subindustry, Magna International'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.

Magna International Debt-to-Equity Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Magna International's Debt-to-Equity distribution charts can be found below:

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

Magna International Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Magna International's Debt to Equity Ratio for the fiscal year 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
	=	(1729	+	5494)	/	11884
	=	0.61

Magna International'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
	=	(1729	+	5494)	/	11884
	=	0.61

Magna International (NYSE:MGA) 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.

Magna International Debt-to-Equity Related Terms

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Magna International (Magna International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Magna International Inc (NYSE:MGA) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

MGA N:Mexico MGA:Germany MGA:Germany MG:Canada

Address

337 Magna Drive, Aurora, ON, CAN, L4G 7K1

Website

https://www.magna.com

Magna International prides itself on a highly entrepreneurial culture and a corporate constitution that outlines distribution of profits to various stakeholders. This automotive supplier's product groups include exteriors, interiors, seating, roof systems, body and chassis, powertrain, vision and electronic systems, closure systems, electric vehicle systems, tooling and engineering, and contract vehicle assembly. In 2022, roughly 50% of Magna's revenue came from North America while Europe accounted for approximately 38%.