Equifax Inc (EFX)
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 | 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-equity ratio | 1.05 | 1.22 | 1.25 | 1.03 | 1.31 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,747,800K ÷ $4,534,100K
= 1.05
Equifax, Inc.'s debt-to-equity ratio has shown fluctuations over the past five years. The ratio indicates the proportion of the company's debt compared to its equity. A higher debt-to-equity ratio suggests that the company is financing its operations more through debt rather than equity.
In 2023, the debt-to-equity ratio decreased to 1.26 from 1.46 in 2022. This suggests that Equifax reduced its reliance on debt and moved towards a more balanced capital structure. However, the ratio is still above 1, indicating that the company has more debt than equity in its capital structure.
Compared to 2023, the debt-to-equity ratio was higher in 2022 at 1.46, and in 2021 at 1.48. This indicates that Equifax was more leveraged in these years, relying more on debt for financing its operations.
In 2020 and 2019, the debt-to-equity ratios were 1.38 and 1.31, respectively. These ratios show a relatively lower level of leverage compared to 2018 and 2019.
Overall, Equifax's debt-to-equity ratio has shown variability over the years, with a recent decreasing trend suggesting a potential improvement in the company's debt management. It is essential for stakeholders to monitor this ratio to assess the company's financial risk and stability.