Clean Harbors Inc (CLH)
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 | 2,291,720 | 2,414,830 | 2,517,020 | 1,549,640 | 1,554,120 |
| Total stockholders’ equity | US$ in thousands | 2,247,510 | 1,922,320 | 1,513,890 | 1,341,550 | 1,269,810 |
| Debt-to-capital ratio | 0.50 | 0.56 | 0.62 | 0.54 | 0.55 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,291,720K ÷ ($2,291,720K + $2,247,510K)
= 0.50
The debt-to-capital ratio of Clean Harbors, Inc. has shown some fluctuation over the past five years. As of December 31, 2023, the company's debt-to-capital ratio stands at 0.51, indicating that debt accounts for approximately 51% of the company's capital structure.
Comparing this to the previous years, we observe a downward trend from 2021 to 2023, suggesting a reduction in the company's reliance on debt to finance its operations. However, it is important to note that in 2023, the ratio is still higher than the levels in 2020 and 2019.
A decreasing trend in the debt-to-capital ratio can signify improved financial stability and lower financial risk for the company, as it indicates a lower proportion of debt in relation to total capital. However, a moderate level of debt can also be beneficial for leveraging opportunities and optimizing capital structure for growth.
Further analysis and comparison with industry benchmarks would provide additional insights into Clean Harbors, Inc.'s capital structure management and financial health.
Peer comparison
Dec 31, 2023