DXP Enterprises Inc (DXPE)
Debt-to-capital 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 | 520,697 | 408,105 | 408,430 | 408,755 | 409,205 | 313,739 | 314,663 | 315,030 | 315,397 | 315,920 | 316,343 | 316,741 | 317,139 | 209,813 | 220,107 | 235,263 | 235,419 | 235,576 | 236,202 | 236,591 |
| Total stockholders’ equity | US$ in thousands | 380,879 | 363,576 | 369,465 | 374,284 | 365,392 | 386,497 | 375,586 | 360,187 | 346,674 | 361,132 | 353,712 | 361,826 | 360,338 | 322,641 | 356,823 | 351,136 | 353,786 | 341,157 | 329,017 | 315,279 |
| Debt-to-capital ratio | 0.58 | 0.53 | 0.53 | 0.52 | 0.53 | 0.45 | 0.46 | 0.47 | 0.48 | 0.47 | 0.47 | 0.47 | 0.47 | 0.39 | 0.38 | 0.40 | 0.40 | 0.41 | 0.42 | 0.43 |
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 shown some fluctuations over the past few quarters, ranging from 0.38 to 0.58. The ratio indicates the proportion of the company's total debt to its total capital, including both debt and equity. Generally, a higher debt-to-capital ratio suggests higher financial risk due to increased reliance on debt financing.
The trend in DXP Enterprises' debt-to-capital ratio shows that the company has maintained a moderate level of debt relative to its total capital structure. The ratio has hovered around the 0.45 to 0.53 range in recent quarters, indicating a stable capital structure with a significant portion of financing coming from debt. This suggests that the company may have a reasonable ability to meet its debt obligations and leverage debt for growth opportunities.
However, it is important to monitor this ratio over time to ensure that the company is managing its debt levels effectively and maintaining a healthy balance between debt and equity in its capital structure. Fluctuations in the ratio may signal changes in the company's financial health and risk profile, warranting further investigation into its debt management strategies and overall financial performance.
Peer comparison
Dec 31, 2023