Dine Brands Global Inc (DIN)

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	1,084,500	1,241,910	1,279,600	1,492,000	1,288,250
Total stockholders’ equity	US$ in thousands	-250,974	-301,084	-242,807	-354,651	-241,774
Debt-to-capital ratio		1.30	1.32	1.23	1.31	1.23

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,084,500K ÷ ($1,084,500K + $-250,974K)
= 1.30

The debt-to-capital ratio of Dine Brands Global Inc has exhibited slight fluctuations over the past five years. The ratio was at 1.21 at the end of 2019 and 2021, increasing to 1.27 in 2022 before decreasing to 1.25 in 2023. This ratio indicates that, on average, approximately 125% of the company's capital is funded by debt.

An increasing trend in the debt-to-capital ratio may suggest a rising reliance on debt financing, which could indicate higher financial risk. Conversely, a decreasing trend may indicate a shift towards equity financing or debt reduction strategies, potentially improving the company's financial stability.

It is essential to assess the company's overall financial health and ability to manage debt levels effectively alongside analyzing the debt-to-capital ratio in isolation. Additional analysis of liquidity, profitability, and cash flow metrics can provide a more comprehensive view of Dine Brands Global Inc's financial position.