National Vision Holdings Inc (EYE)
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 | 437,684 | 546,231 | 543,566 | 624,611 | 525,896 |
| Total stockholders’ equity | US$ in thousands | 829,418 | 901,113 | 925,980 | 906,502 | 776,437 |
| Debt-to-equity ratio | 0.53 | 0.61 | 0.59 | 0.69 | 0.68 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $437,684K ÷ $829,418K
= 0.53
The debt-to-equity ratio of National Vision Holdings Inc has exhibited a downward trend over the past five years, indicating an improvement in the company's financial leverage. The ratio decreased from 0.68 in 2019 to 0.53 in 2023. This suggests that the company has been able to reduce its reliance on debt financing relative to equity financing over the years.
A lower debt-to-equity ratio generally indicates lower financial risk and a stronger financial position for the company. It implies that National Vision Holdings Inc has a greater proportion of its funding coming from equity as compared to debt, which can be seen as a positive sign by investors and creditors.
Overall, the declining trend in the debt-to-equity ratio demonstrates that National Vision Holdings Inc has been effectively managing its capital structure and working towards a healthier balance between debt and equity in its financial operations.
Peer comparison
Dec 31, 2023