Deluxe Corporation (DLX)
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 | 1,506,700 | 1,572,530 | 1,625,750 | 840,000 | 883,500 |
| Total stockholders’ equity | US$ in thousands | 604,094 | 603,809 | 574,318 | 540,697 | 570,861 |
| Debt-to-equity ratio | 2.49 | 2.60 | 2.83 | 1.55 | 1.55 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,506,700K ÷ $604,094K
= 2.49
The debt-to-equity ratio of Deluxe Corp. has exhibited fluctuations over the past five years. In 2023, the ratio decreased to 2.64 from 2.72 in 2022, indicating a slight improvement in the company's debt management. However, it is still relatively high compared to the ratios in 2020 and 2019, where it stood at 1.55. This suggests that Deluxe Corp. has been relying more on debt to finance its operations and investments in recent years.
The upward trend from 2019 to 2021, with the ratio rising from 1.55 to 2.93, may indicate a shift towards a more aggressive debt financing strategy during that period. However, the subsequent decrease in the ratio in 2022 and 2023 could suggest efforts to reduce debt levels or a change in the capital structure towards a more balanced mix of debt and equity.
Overall, the trend in Deluxe Corp.'s debt-to-equity ratio reflects varying degrees of leverage and financial risk over the years, highlighting the importance of monitoring the company's capital structure and debt management practices for long-term financial health and stability.