Comfort Systems USA Inc (FIX)
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 | 39,345 | 247,245 | 385,242 | 235,733 | 205,318 |
| Total stockholders’ equity | US$ in thousands | 1,277,830 | 999,923 | 805,666 | 696,429 | 585,304 |
| Debt-to-capital ratio | 0.03 | 0.20 | 0.32 | 0.25 | 0.26 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $39,345K ÷ ($39,345K + $1,277,830K)
= 0.03
The debt-to-capital ratio of Comfort Systems USA, Inc. has shown a decreasing trend over the past five years. In 2023, the ratio was at 0.03, significantly lower than the previous years, indicating a lower level of debt relative to its total capital. This decrease suggests that the company has been effectively managing its debt levels and improving its capital structure. Lower debt-to-capital ratios can be viewed positively by investors and creditors as they imply lower financial risk and greater financial stability. However, it is important to note that a very low debt-to-capital ratio may also signify underutilization of debt as a cheaper source of capital. Overall, the decreasing trend in Comfort Systems USA, Inc.'s debt-to-capital ratio reflects prudent financial management and a strengthening balance sheet position.
Peer comparison
Dec 31, 2023