Dril-Quip Inc (DRQ)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 881,260 | 872,352 | 897,108 | 1,041,530 | 1,090,700 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $881,260K)
= 0.00
The debt-to-capital ratio of Dril-Quip, Inc. has consistently remained at 0.00 over the past five years, indicating that the company has not utilized debt financing as part of its capital structure during this period. This suggests that Dril-Quip has primarily relied on equity financing to fund its operations and investments instead of taking on debt. A debt-to-capital ratio of 0.00 implies that the company's capital structure is debt-free, which could be viewed positively by investors and creditors as it signifies lower financial risk and interest expenses. It is important to note that while a debt-free status can be advantageous, it may also limit the company's growth opportunities and tax benefits associated with debt financing. Overall, Dril-Quip's consistent 0.00 debt-to-capital ratio reflects a conservative financial strategy focused on maintaining a strong balance sheet and financial stability.
Peer comparison
Dec 31, 2023