Autoliv Corp (ALV) - Short-Term Debt to Equity

Leveraging a global network of high-tech plants with just-in-time logistics, Autoliv, Inc. (ALV) relies on the commitment of its engineers to the mission of reducing road fatalities. The short-term debt-to-equity trend demonstrates that the ratio has settled at 0.03. Its status as the absolute leader in safety systems production and rigorous quality control fully protect the company from price dumping.

Autoliv, Inc. (ALV) production of passive safety systems is subject to the pronounced cyclicality of the global automotive industry. The ratio of short-term liabilities to equity, equal to 0.03, measures the company's dependence on rapid debt repayment during periods of declining demand. Analyzing changes in short-term credit load relative to equity allows for an assessment of liquidity risk and balance sheet stability. A low level of this ratio minimizes the probability of default, optimizing the cost of borrowed capital.