Blackline Inc (BL)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,140,610	1,384,310	1,114,240	407,032	384,343
Total assets	US$ in thousands	2,100,760	1,943,660	1,817,580	1,113,500	1,014,550
Debt-to-assets ratio		0.54	0.71	0.61	0.37	0.38

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,140,610K ÷ $2,100,760K
= 0.54

The debt-to-assets ratio of Blackline Inc has fluctuated over the past five years, ranging from 0.37 to 0.71. A decreasing trend was observed from 2020 to 2021, followed by an increase in 2022, before slightly decreasing again in 2023. The ratio stood at 0.54 as of December 31, 2023, indicating that 54% of the company's assets were financed through debt.

A higher debt-to-assets ratio typically suggests a higher degree of financial risk, as it implies that a larger portion of the company's assets is funded by debt. In this case, the trend indicates that Blackline Inc has been relying more on debt financing in recent years, which could potentially increase its financial risk and interest payment obligations.

It is essential for stakeholders to monitor this ratio closely to assess the company's financial stability and ability to repay its debts in the long term. Additionally, management should consider optimizing the capital structure to maintain a healthy balance between debt and equity financing, ensuring sustainable growth and financial health.