Dover Corporation (DOV)
Debt-to-equity 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-equity ratio | 0.59 | 0.61 | 0.64 | 0.66 | 0.69 | 0.71 | 0.67 | 0.69 | 0.72 | 0.79 | 0.83 | 0.88 | 0.92 | 1.13 | 1.17 | 1.18 | 0.98 | 1.14 | 1.18 | 1.25 |
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 of Dover Corp. has exhibited fluctuations over the past eight quarters. The ratio has ranged from a low of 0.65 in Q3 2023 to a high of 0.91 in Q3 2022. Generally, a decreasing trend in the debt-to-equity ratio signifies that the company is relying less on debt to finance its operations relative to its equity. On the other hand, an increasing trend indicates a higher proportion of debt in the company's capital structure.
In the latest quarter, Q4 2023, the debt-to-equity ratio stands at 0.68, indicating that for every dollar of equity, the company has $0.68 in debt. This suggests a moderate level of debt leverage, which can be advantageous for achieving growth and maximizing returns for shareholders. However, it is essential for the company to manage its debt levels prudently, considering factors such as interest rates and repayment obligations, to avoid financial distress.
Overall, the trend in Dover Corp.'s debt-to-equity ratio should be closely monitored to assess the company's financial health, risk profile, and capital structure strategy. fluctuations in this ratio can provide insights into how the company is balancing its financing sources and managing its financial leverage.
Peer comparison
Dec 31, 2023