Columbia Sportswear Company (COLM)
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 | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,938,610 | 1,935,790 | 1,989,250 | 1,832,770 | 1,849,450 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,938,610K
= 0.00
The debt-to-equity ratio of Columbia Sportswear Co. has consistently been at 0.00 for the past five years, indicating that the company has not utilized any debt to finance its operations and growth during this period. A debt-to-equity ratio of 0.00 implies that the company's operations have been funded entirely by equity, suggesting a lower financial risk as there is no debt burden to service. It can also signify that the company has a strong equity base to support its activities and investments without relying on external borrowing. However, it is essential to consider that a low or zero debt-to-equity ratio may also imply missed opportunities for leveraging financial leverage for potential growth or tax benefits associated with debt financing. Overall, the consistent 0.00 debt-to-equity ratio for Columbia Sportswear Co. over the past five years indicates a conservative approach to capital structure and financial risk management.
Peer comparison
Dec 31, 2023