Celsius Holdings Inc (CELH)
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 | 264,040 | 40,091 | 217,046 | 104,327 | 63,459 |
| 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 + $264,040K)
= 0.00
The debt-to-capital ratio of Celsius Holdings Inc has shown consistent and significant improvement over the past five years. As of December 31, 2019, the company had a debt-to-capital ratio of 0.13, indicating that 13% of its capital was funded by debt. However, from 2020 to 2023, the company managed to reduce its debt levels to zero, resulting in a debt-to-capital ratio of 0.00 for each of those years.
This significant decrease in debt leverage suggests that Celsius Holdings Inc has successfully reduced its reliance on debt financing and has improved its financial stability and flexibility. A debt-to-capital ratio of zero indicates that the company is primarily funding its operations and investments through equity, which can be perceived positively by investors and creditors as it signifies lower financial risk and potential for enhanced profitability.
Overall, the trend of decreasing debt-to-capital ratio over the years indicates prudent financial management and a strong balance sheet position for Celsius Holdings Inc.
Peer comparison
Dec 31, 2023