Floor & Decor Holdings Inc (FND)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 194,939 | 405,551 | 195,762 | 207,157 | 142,606 |
| Total assets | US$ in thousands | 4,662,550 | 4,351,240 | 3,730,700 | 2,880,420 | 2,324,310 |
| Debt-to-assets ratio | 0.04 | 0.09 | 0.05 | 0.07 | 0.06 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $194,939K ÷ $4,662,550K
= 0.04
Floor & Decor Holdings Inc's debt-to-assets ratio has exhibited fluctuation over the past five years. The ratio was at its lowest in 2023 at 0.04, indicating that only 4% of the company's total assets were financed through debt. This suggests a strong financial position with a low reliance on debt funding.
In contrast, the ratio was higher in 2022 and 2020 at 0.09 and 0.07 respectively, indicating that a higher proportion of assets were financed by debt during those years. However, the ratio decreased to 0.05 in 2021 and 0.06 in 2019, indicating a reduction in debt financing relative to total assets in those respective years.
Overall, the trend in Floor & Decor Holdings Inc's debt-to-assets ratio indicates fluctuations in the company's utilization of debt to finance its operations and growth. However, the current ratio of 0.04 suggests a conservative approach to debt management, which may indicate a strong financial position and lower financial risk for the company.
Peer comparison
Dec 31, 2023