Floor & Decor Holdings Inc (FND)
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 | 194,939 | 405,551 | 195,762 | 207,157 | 142,606 |
| Total stockholders’ equity | US$ in thousands | 1,930,990 | 1,657,180 | 1,323,200 | 997,388 | 764,336 |
| Debt-to-capital ratio | 0.09 | 0.20 | 0.13 | 0.17 | 0.16 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $194,939K ÷ ($194,939K + $1,930,990K)
= 0.09
Floor & Decor Holdings Inc's debt-to-capital ratio has shown fluctuating trends over the past five years. In 2023, the company's debt-to-capital ratio decreased to 0.09 from 0.20 in 2022. This signifies an improvement in the company's debt management, with a lower proportion of debt in relation to its total capital.
Comparing to previous years, the 2023 ratio of 0.09 is notably lower than the ratios reported in 2021, 2020, and 2019, indicating a more conservative debt structure in the current year. It suggests that the company has decreased its reliance on debt financing in 2023, which may result in lower financial risk and interest expense.
However, it is important to note that a very low debt-to-capital ratio may also indicate underutilization of debt capital, potentially missing out on leverage for growth opportunities. Monitoring future trends in Floor & Decor's debt-to-capital ratio will provide insights into the company's overall financial health and its strategic approach to capital structure management.
Peer comparison
Dec 31, 2023