VHI: Valhi Inc Short-Term Debt to Capital

The daily price chart for Valhi, Inc. (VHI) shows a standalone debt-to-equity ratio of 0.01. Valhi, Inc. (VHI) generates revenue through the sale of titanium pigments, real estate management, and water supply. However, the chemical sector's dependence on commodity cycles and the fragmented nature of its assets hinder the generation of a stable cash flow. Meanwhile, the company's diversified business model allows it to effectively distribute risks across development, lock manufacturing, and chemicals.

This indicator measures the proportion of liabilities maturing within one year relative to equity, reflecting current liquidity and financial stability. By analyzing the current level of short-term capital burden, an investor assesses the risk of default and the business's dependence on external refinancing. Low values minimize the threat of asset impairment. For Valhi, Inc. (VHI), this metric is critical due to the volatility of the chemical sector and unstable free cash flow.