Deluxe Corporation (DLX)
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 | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 620,918 | 604,094 | 604,200 | 574,600 | 540,800 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $620,918K)
= 0.00
Based on the data provided for Deluxe Corporation, the debt-to-capital ratio has consistently remained at 0.00 from December 31, 2020, to December 31, 2024.
A debt-to-capital ratio of 0.00 indicates that the company has not utilized any debt in its capital structure during the specified period. This implies that the company has financed its operations and investments solely through equity, without resorting to borrowing.
While a low or zero debt-to-capital ratio can be viewed positively in terms of financial risk and leverage, it is essential to consider the overall financial health and strategic goals of the company in order to fully assess the implications of this ratio. Additionally, understanding the reasons behind the lack of debt in the capital structure can provide further insights into the company's financial decision-making and risk management strategies.