DXP Enterprises Inc (DXPE)
Debt-to-equity 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-equity ratio | 1.37 | 1.12 | 0.91 | 0.88 | 0.67 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $520,697K ÷ $380,879K
= 1.37
The debt-to-equity ratio of DXP Enterprises Inc has been increasing over the past five years, indicating a rising level of financial leverage. The ratio stood at 0.67 in 2019 and has steadily climbed to 1.37 in 2023. This upward trend suggests that the company has been relying more on debt financing compared to equity financing to support its operations and investment activities. A higher debt-to-equity ratio may indicate that the company is taking on more debt relative to its equity, which could potentially lead to increased financial risk and interest payment obligations. It is important for investors and stakeholders to monitor this trend closely to assess the company's ability to manage its debt levels effectively.
Peer comparison
Dec 31, 2023