Floor & Decor Holdings Inc (FND)
Debt-to-assets ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 194,939 | 195,042 | 230,145 | 301,748 | 405,551 | 371,854 | 264,157 | 195,660 | 195,762 | 195,865 | 195,443 | 195,546 | 207,157 | 206,793 | 206,977 | 413,326 | 142,606 | 143,288 | 140,470 | 141,152 |
| Total assets | US$ in thousands | 4,662,550 | 4,638,080 | 4,475,470 | 4,335,190 | 4,351,240 | 4,244,670 | 4,199,380 | 3,893,390 | 3,730,700 | 3,628,110 | 3,364,300 | 2,964,720 | 2,880,420 | 2,714,400 | 2,528,730 | 2,633,880 | 2,324,310 | 2,156,870 | 2,011,120 | 1,873,350 |
| Debt-to-assets ratio | 0.04 | 0.04 | 0.05 | 0.07 | 0.09 | 0.09 | 0.06 | 0.05 | 0.05 | 0.05 | 0.06 | 0.07 | 0.07 | 0.08 | 0.08 | 0.16 | 0.06 | 0.07 | 0.07 | 0.08 |
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 fluctuated over the past few quarters, ranging from a low of 0.04 to a high of 0.16. The ratio indicates the proportion of the company's assets that are financed by debt. A lower ratio suggests lower financial risk and indicates that the company relies more on equity to finance its operations.
In this case, the gradual increase in the debt-to-assets ratio from 0.04 in December 2020 to 0.16 in March 2020 could indicate that Floor & Decor Holdings Inc has been taking on more debt relative to its assets. This might be a strategic decision to fuel growth or finance investments. However, investors and creditors may closely monitor this trend to assess the company's ability to manage its debt levels and financial obligations effectively. It is important for the company to strike a balance between debt and equity financing to maintain financial stability in the long run.
Peer comparison
Dec 31, 2023