Dover Corporation (DOV)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,991,760 | 2,944,750 | 2,976,570 | 2,961,360 | 2,942,510 | 2,842,660 | 2,936,120 | 2,981,920 | 3,018,710 | 3,060,180 | 3,083,250 | 3,063,370 | 3,108,830 | 3,047,220 | 3,000,870 | 2,963,020 | 2,985,720 | 2,908,730 | 2,946,490 | 2,940,970 |
| Total stockholders’ equity | US$ in thousands | 5,106,600 | 4,832,500 | 4,662,100 | 4,460,560 | 4,286,370 | 3,991,430 | 4,388,520 | 4,329,780 | 4,189,530 | 3,891,820 | 3,719,300 | 3,499,140 | 3,385,770 | 2,697,630 | 2,575,170 | 2,509,100 | 3,032,660 | 2,555,670 | 2,501,210 | 2,357,130 |
| Debt-to-capital ratio | 0.37 | 0.38 | 0.39 | 0.40 | 0.41 | 0.42 | 0.40 | 0.41 | 0.42 | 0.44 | 0.45 | 0.47 | 0.48 | 0.53 | 0.54 | 0.54 | 0.50 | 0.53 | 0.54 | 0.56 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,991,760K ÷ ($2,991,760K + $5,106,600K)
= 0.37
The debt-to-capital ratio of Dover Corp. has shown a declining trend over the past eight quarters, decreasing from 0.46 in Q4 2022 to 0.40 in Q4 2023. This indicates that the company is relying less on debt to finance its operations and growth relative to its total capital structure.
A lower debt-to-capital ratio suggests that Dover Corp. has a stronger equity base and may be in a better financial position to weather economic downturns or disruptions. It also implies that the company may have sufficient internal resources to fund its operations and investments without heavily relying on external borrowing.
The fluctuations in the debt-to-capital ratio over the quarters may reflect the company's capital management decisions, such as debt repayments, equity issuances, or changes in capital structure priorities. Overall, the declining trend in the ratio signals a positive development in Dover Corp.'s financial leverage and capital structure efficiency.
Peer comparison
Dec 31, 2023