Blackbaud Inc (BLKB)

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 760,405 840,241 937,483 518,193 459,600
Total stockholders’ equity US$ in thousands 808,705 744,032 717,060 426,150 396,764
Debt-to-capital ratio 0.48 0.53 0.57 0.55 0.54

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $760,405K ÷ ($760,405K + $808,705K)
= 0.48

The debt-to-capital ratio of Blackbaud Inc has been fluctuating over the past five years, ranging from 0.49 to 0.57. A decreasing trend is observed from 2021 to 2023, suggesting a lower reliance on debt financing relative to total capital. This may indicate improved financial stability and a reduced risk of financial distress. However, the ratio remains above 0.5 in each year, indicating that a significant portion of the company's capital structure is funded by debt. It is essential for investors to monitor this ratio closely to assess Blackbaud's ability to manage its debt obligations and potential financial risks associated with debt levels.