Astec Industries Inc (ASTE)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 72,000 | 78,100 | 200 | 400 | 700 |
| Total stockholders’ equity | US$ in thousands | 653,400 | 626,900 | 650,800 | 642,500 | 601,900 |
| Debt-to-equity ratio | 0.11 | 0.12 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $72,000K ÷ $653,400K
= 0.11
The debt-to-equity ratio of Astec Industries Inc. has shown a consistent and relatively low level of indebtedness over the past five years. In 2020, 2021, 2022, and 2023, the company maintained a debt-to-equity ratio of 0.00, indicating that the company had no debt and was predominantly financed by equity during these years. However, there was a slight increase in the debt-to-equity ratio in 2023, rising to 0.13, and then to 0.14 in 2022, suggesting a slight shift towards a more leveraged position.
Overall, the historical trend of low debt-to-equity ratios reflects Astec Industries Inc.'s conservative financial leverage strategy, which may imply lower financial risk and greater financial stability. However, the recent increase in the ratio could indicate a potential shift in the company's capital structure or expansion plans that involve taking on more debt. Further analysis of the company's financial performance and future prospects would be necessary to fully assess the implications of this change in the debt-to-equity ratio.
Peer comparison
Dec 31, 2023