Clean Harbors Inc (CLH)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,771,120 | 2,291,720 | 2,414,830 | 2,517,020 | 1,549,640 |
| Total stockholders’ equity | US$ in thousands | 2,573,530 | 2,247,510 | 1,922,320 | 1,513,890 | 1,341,550 |
| Debt-to-capital ratio | 0.52 | 0.50 | 0.56 | 0.62 | 0.54 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,771,120K ÷ ($2,771,120K + $2,573,530K)
= 0.52
Clean Harbors Inc's debt-to-capital ratio has shown variations over the past five years. As of December 31, 2020, the ratio stood at 0.54, indicating that approximately 54% of the company's capital was financed through debt. The ratio increased to 0.62 by December 31, 2021, suggesting a higher reliance on debt financing in the company's capital structure.
However, by December 31, 2022, the debt-to-capital ratio declined to 0.56, signaling a reduction in the proportion of debt in the company's capital mix. This trend continued in the following years, as the ratio decreased to 0.50 by December 31, 2023, and then slightly increased to 0.52 by December 31, 2024.
Overall, the fluctuation in Clean Harbors Inc's debt-to-capital ratio over the years indicates varying levels of debt usage in funding the company's operations and investments. It is essential for stakeholders to closely monitor this ratio to assess the company's financial risk and solvency position.