Exponent Inc (EXPO)
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 | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 356,085 | 320,752 | 417,065 | 361,498 | 350,251 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $356,085K
= 0.00
The debt-to-equity ratio of Exponent Inc has been consistently at 0.00 for the past five years, indicating that the company has not utilized debt to finance its operations during this period. This suggests that Exponent Inc has chosen to rely more on equity financing, such as issuing shares, retained earnings, or other equity sources, rather than taking on debt to fund its activities.
A debt-to-equity ratio of 0.00 may imply a conservative financial strategy, as the company is not burdened with significant debt obligations. This can be a positive sign for investors and creditors, as lower debt levels can reduce financial risk and improve the company's financial stability.
However, it's important to note that a debt-to-equity ratio of 0.00 may also indicate limited growth opportunities or potential underutilization of leverage for strategic investments. While a low or zero debt level may be favorable in terms of financial risk, it may also suggest a potentially cautious approach to capital structure management.
Overall, Exponent Inc's consistent debt-to-equity ratio of 0.00 over the past five years reflects a deliberate choice to maintain a debt-free capital structure, which has implications for the company's risk profile, financial flexibility, and growth potential.
Peer comparison
Dec 31, 2023