Clean Harbors Inc (CLH)
Debt-to-equity 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-equity ratio | 1.02 | 1.26 | 1.66 | 1.16 | 1.22 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,291,720K ÷ $2,247,510K
= 1.02
The debt-to-equity ratio of Clean Harbors, Inc. has fluctuated over the past five years. In 2023, the ratio decreased to 1.02 from 1.26 in 2022, indicating a lower level of debt relative to equity in the company's capital structure. This reduction suggests potential improvements in the company's debt management or growth in equity.
Compared to 2021 where the ratio was 1.67, the 2023 ratio reflects a significant decrease, signaling a possible reduction in the company's reliance on debt financing. It is worth noting that the 2020 ratio was relatively lower at 1.16 compared to 2021, indicating a more conservative debt structure that year.
Although the current ratio of 1.02 in 2023 is lower than the previous three years, it is slightly higher than the ratio in 2019, where it stood at 1.23. This comparison indicates that the company's debt levels relative to equity have varied over the years, with potential implications for its financial risk and overall capital structure stability.
Further analysis and monitoring of Clean Harbors' debt-to-equity ratio trends will be crucial to evaluate the company's leverage position and assess its ability to meet financial obligations efficiently while optimizing shareholder returns.
Peer comparison
Dec 31, 2023