Alamo Group Inc (ALG)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 932,763 | 785,360 | 705,663 | 635,003 | 577,943 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $932,763K)
= 0.00
The debt-to-capital ratio of Alamo Group Inc. has displayed a decreasing trend over the past five years, indicating a favorable shift towards a lower reliance on debt to finance its operations and investments. In 2023, the ratio stood at 0.20, down from 0.28 in both 2022 and 2021, and significantly lower than the ratios of 0.31 in 2020 and 0.44 in 2019.
This decreasing trend suggests that the company has been able to manage its debt levels more effectively in recent years, resulting in a higher proportion of capital being funded by equity. A lower debt-to-capital ratio generally indicates a healthier financial position and reduced financial risk for the company, as it implies less financial leverage and lower interest expense burden.
Overall, the improving debt-to-capital ratio of Alamo Group Inc. over the past five years reflects positively on the company's financial health and its ability to maintain a balanced capital structure.
Peer comparison
Dec 31, 2023