Equifax Inc (EFX)
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 | 4,747,800 | 4,820,100 | 4,470,100 | 3,277,300 | 3,379,500 |
| Total stockholders’ equity | US$ in thousands | 4,534,100 | 3,956,500 | 3,584,400 | 3,168,400 | 2,578,600 |
| Debt-to-capital ratio | 0.51 | 0.55 | 0.55 | 0.51 | 0.57 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,747,800K ÷ ($4,747,800K + $4,534,100K)
= 0.51
The debt-to-capital ratio of Equifax, Inc. has shown a slight fluctuation in recent years. The ratio decreased from 0.60 in 2021 to 0.56 in 2023, indicating a lower reliance on debt to finance its operations relative to its capital structure. In general, the trend suggests that Equifax is managing its debt levels effectively, maintaining a balance between debt and equity financing over the years. Although the ratio increased in 2022 to 0.59, it remained within a relatively stable range between 0.56 and 0.60 from 2021 to 2023. This indicates that Equifax's financial leverage has been relatively consistent, with the company utilizing a mix of debt and equity financing to support its operations and growth initiatives. Overall, the debt-to-capital ratio analysis suggests that Equifax has maintained a prudent capital structure strategy in the examined period.