Dover Corporation (DOV)
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 | 2,991,760 | 2,942,510 | 3,018,710 | 3,108,830 | 2,985,720 |
| Total stockholders’ equity | US$ in thousands | 5,106,600 | 4,286,370 | 4,189,530 | 3,385,770 | 3,032,660 |
| Debt-to-equity ratio | 0.59 | 0.69 | 0.72 | 0.92 | 0.98 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,991,760K ÷ $5,106,600K
= 0.59
The debt-to-equity ratio for Dover Corp. has exhibited a fluctuating trend over the past five years. In 2019, the ratio was relatively high at 1.01, indicating that the company was heavily reliant on debt financing compared to equity.
However, there has been a gradual decline in the debt-to-equity ratio in the subsequent years, reaching its lowest point of 0.68 in 2023. This suggests that Dover Corp. has been reducing its reliance on debt and moving towards a more balanced capital structure with a greater proportion of equity.
The decreasing trend in the debt-to-equity ratio signifies that the company may be improving its financial stability and reducing its financial risk. Investors and creditors may view a lower debt-to-equity ratio favorably as it indicates a stronger financial position and lower leverage.
Overall, the decreasing trend in Dover Corp.'s debt-to-equity ratio over the past five years indicates a positive shift towards a more conservative capital structure with less reliance on debt financing.
Peer comparison
Dec 31, 2023