DXP Enterprises Inc (DXPE)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 520,697 | 409,205 | 315,397 | 317,139 | 235,419 |
| Total assets | US$ in thousands | 1,177,440 | 1,037,280 | 894,227 | 868,131 | 788,220 |
| Debt-to-assets ratio | 0.44 | 0.39 | 0.35 | 0.37 | 0.30 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $520,697K ÷ $1,177,440K
= 0.44
The debt-to-assets ratio for DXP Enterprises Inc has shown an increasing trend over the past five years, indicating a gradual buildup of debt relative to its total assets. As of December 31, 2023, the ratio stands at 0.44, reflecting that 44% of the company's assets are financed through debt. This represents a notable increase from the ratio of 0.30 recorded at the end of 2019.
The rising debt-to-assets ratio may suggest that DXP Enterprises Inc has been relying more on debt financing to support its operations and investments. While a higher ratio can potentially indicate increased financial risk and leverage, it can also indicate strategic decisions to take advantage of borrowing at favorable interest rates to fund growth opportunities.
It is essential for stakeholders to closely monitor this ratio to assess the company's overall financial health and its ability to meet its debt obligations. A sustained increase in the debt-to-assets ratio may warrant further investigation into the company's debt management practices and long-term sustainability.
Peer comparison
Dec 31, 2023