DXP Enterprises Inc (DXPE)
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 | 520,697 | 409,205 | 315,397 | 317,139 | 235,419 |
| Total stockholders’ equity | US$ in thousands | 380,879 | 365,392 | 346,674 | 360,338 | 353,786 |
| Debt-to-capital ratio | 0.58 | 0.53 | 0.48 | 0.47 | 0.40 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $520,697K ÷ ($520,697K + $380,879K)
= 0.58
The debt-to-capital ratio of DXP Enterprises Inc has exhibited an increasing trend over the past five years, with values of 0.40 in 2019, 0.47 in 2020, 0.48 in 2021, 0.53 in 2022, and 0.58 in 2023. This indicates that the company's reliance on debt as a source of capital relative to its total capital structure has been on the rise. A higher debt-to-capital ratio may suggest increased financial leverage and potential financial risk. It is essential for stakeholders to closely monitor this trend to assess the company's ability to meet its debt obligations and manage its overall financial health effectively.
Peer comparison
Dec 31, 2023