Boise Cascad Llc (BCC)
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 | 445,280 | 444,392 | 444,628 | 443,792 | 440,544 |
| Total stockholders’ equity | US$ in thousands | 2,195,660 | 2,057,980 | 1,352,620 | 850,799 | 701,330 |
| Debt-to-capital ratio | 0.17 | 0.18 | 0.25 | 0.34 | 0.39 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $445,280K ÷ ($445,280K + $2,195,660K)
= 0.17
The debt-to-capital ratio of Boise Cascade Co has shown a decreasing trend over the past five years, indicating a gradual reduction in the proportion of debt used to finance the company's operations relative to its total capital. In 2019, the ratio was at its highest point of 0.40, signaling a higher reliance on debt financing compared to the later years.
The following years witnessed a downward trend in the debt-to-capital ratio, with values of 0.36 in 2020, 0.26 in 2021, 0.19 in 2022, and 0.18 in 2023. This decline suggests that Boise Cascade Co has been effectively managing its debt levels and possibly shifting towards a more balanced capital structure.
The decreasing debt-to-capital ratio may imply reduced financial risk and improved financial health for the company, as lower levels of debt relative to total capital can enhance liquidity, reduce interest expenses, and provide more flexibility for future investments and growth opportunities.
Overall, the decreasing trend in Boise Cascade Co's debt-to-capital ratio reflects a positive financial strategy aimed at optimizing its capital structure and maintaining a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023