DXP Enterprises Inc (DXPE)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 422,788 | 380,879 | 365,392 | 358,639 | 347,068 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $422,788K)
= 0.00
Based on the data provided, DXP Enterprises Inc has consistently maintained a debt-to-capital ratio of 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not utilized debt as a significant portion of its capital structure during this period.
A debt-to-capital ratio of 0.00 suggests that DXP Enterprises Inc has funded its operations primarily through equity or other sources of capital rather than relying on debt financing. This may imply lower financial risk for the company, as it has not accumulated a substantial amount of debt relative to its total capital.
However, it is essential to note that a debt-to-capital ratio of 0.00 may also signal that the company is not utilizing debt efficiently to benefit from potential tax advantages or leverage opportunities. While a low debt-to-capital ratio can be favorable in terms of financial stability and risk management, it is essential to balance debt levels to optimize capital structure for growth and profitability.
Overall, DXP Enterprises Inc's consistent debt-to-capital ratio of 0.00 over the five-year period indicates a conservative approach to capital structure management, which may have both advantages and drawbacks depending on the company's strategic goals and future capital requirements.
Peer comparison
Dec 31, 2024