Blackline Inc (BL)

Debt-to-equity 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-equity ratio		4.37	5.28	7.86	11.84	12.37	17.75	17.45	20.87	3.43	3.22	3.21	3.14	0.96	0.96	0.97	0.98	0.96	0.96	0.00	0.00

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,140,610K ÷ $260,881K
= 4.37

The debt-to-equity ratio of Blackline Inc has shown significant fluctuations over the past few quarters, indicating varying levels of leverage and financial risk. The ratio measures the amount of total debt relative to shareholders' equity, providing insights into the company's capital structure and financial health.

In the latest observation as of December 31, 2023, the debt-to-equity ratio stood at 4.37, indicating that the company had a high level of debt compared to its equity. This suggests that Blackline Inc relied more on external funding rather than internal resources to finance its operations and growth.

The trend over the past quarters shows a general increase in the debt-to-equity ratio, with peaks at 20.87 in March 31, 2022, and 17.75 in September 30, 2022. These high ratios imply an aggressive leverage strategy, which may pose risks in terms of financial stability and liquidity, especially during economic downturns.

However, it is worth noting that there were periods of lower debt-to-equity ratios, such as in December 31, 2021, and the following quarters in 2020 and 2019, where the ratios were approaching 1 or even 0. This suggests a more conservative capital structure and a healthier balance between debt and equity.

Overall, the fluctuating trend in Blackline Inc's debt-to-equity ratio reflects the company's dynamic approach to financing and managing its capital structure. Investors and stakeholders should closely monitor these ratios to assess the company's financial risk and management of debt levels.