Deluxe Corporation (DLX)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,506,700 | 1,572,530 | 1,625,750 | 840,000 | 883,500 |
| Total assets | US$ in thousands | 3,080,620 | 3,076,520 | 3,074,380 | 1,842,180 | 1,943,310 |
| Debt-to-assets ratio | 0.49 | 0.51 | 0.53 | 0.46 | 0.45 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,506,700K ÷ $3,080,620K
= 0.49
The debt-to-assets ratio of Deluxe Corp. has fluctuated over the past five years. In 2023, the ratio decreased slightly to 0.52 from 0.53 in 2022. This indicates that the company financed 52% of its assets through debt in 2023. While the ratio has shown some variability, it generally remained in a range between 0.45 and 0.55 from 2019 to 2023.
A decreasing trend in the debt-to-assets ratio may suggest that Deluxe Corp. is relying less on debt to finance its assets, which could potentially indicate improved financial stability and lower financial risk. However, it is essential to further analyze the company's overall debt levels and financial health in conjunction with other financial ratios to gain a comprehensive understanding of its financial position.