Calix Inc (CALX)
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 | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 718,982 | 679,567 | 568,428 | 280,325 | 154,028 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $718,982K)
= 0.00
The debt-to-capital ratio of Calix Inc has shown a significant decline over the past five years. In 2019, the ratio was relatively high at 0.16, indicating that a substantial portion of the company's capital was financed through debt. However, in subsequent years, there has been a consistent downward trend in the ratio, reaching 0.00 in 2023.
A debt-to-capital ratio of 0.00 suggests that the company has no debt financing in its capital structure or that its total debt is negligible compared to its total capital. This may indicate a lower financial risk for the company, as it is not heavily reliant on debt to fund its operations or expansion.
The decreasing trend in the debt-to-capital ratio over the years could be indicative of the company's improving financial health and leverage position. It may reflect a strategic shift towards a more conservative capital structure with lower debt levels, potentially reducing interest expenses and improving overall financial stability.
Overall, the decreasing debt-to-capital ratio of Calix Inc indicates a positive trend towards a more solid financial position with lower reliance on debt funding. This could be viewed favorably by investors and creditors as it implies lower financial risk and potential for sustainable growth.
Peer comparison
Dec 31, 2023