Blackline Inc (BL)

Debt-to-capital ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	1,140,610	1,139,540	1,387,050	1,385,670	1,384,310	1,382,910	1,381,520	1,380,150	1,114,240	1,097,970	1,081,940	1,066,350	407,032	401,217	395,459	389,875	384,343	378,856	—	—
Total stockholders’ equity	US$ in thousands	260,881	215,731	176,362	116,992	111,868	77,931	79,183	66,128	325,036	340,740	337,041	339,628	422,070	416,934	409,778	396,189	398,613	393,820	324,548	318,036
Debt-to-capital ratio		0.81	0.84	0.89	0.92	0.93	0.95	0.95	0.95	0.77	0.76	0.76	0.76	0.49	0.49	0.49	0.50	0.49	0.49	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,140,610K ÷ ($1,140,610K + $260,881K)
= 0.81

The debt-to-capital ratio for Blackline Inc has shown fluctuations over the past few years. The ratio has generally trended upwards, indicating that the company has been increasing its reliance on debt to finance its operations and growth.

The ratio stood at 0.00 in the first quarters of 2019 and 2020, suggesting that the company had no debt and was wholly financed by equity during those periods. However, starting from the first quarter of 2021, the ratio began to increase steadily, reaching a peak of 0.95 in the second half of 2022.

The highest debt-to-capital ratio of 0.95 in the second half of 2022 could signal increased financial risk for Blackline Inc, as a higher ratio indicates a larger proportion of debt in the company's capital structure compared to equity. It suggests that the company may be taking on more debt, which could potentially lead to higher interest expenses and financial obligations.

Investors and stakeholders may closely monitor the trend of the debt-to-capital ratio to assess Blackline Inc's financial health and leverage levels. A sustained increase in the ratio could prompt concerns about the company's ability to service its debt and manage its financial obligations effectively.