Floor & Decor Holdings Inc (FND)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,930,990 | 1,885,480 | 1,809,780 | 1,728,420 | 1,657,180 | 1,582,620 | 1,494,290 | 1,402,420 | 1,323,200 | 1,264,910 | 1,179,600 | 1,080,720 | 997,388 | 931,505 | 850,496 | 809,289 | 764,336 | 723,040 | 670,888 | 619,961 |
| Debt-to-capital ratio | 0.09 | 0.09 | 0.11 | 0.15 | 0.20 | 0.19 | 0.15 | 0.12 | 0.13 | 0.13 | 0.14 | 0.15 | 0.17 | 0.18 | 0.20 | 0.34 | 0.16 | 0.17 | 0.17 | 0.19 |
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 displayed some fluctuations over the past five years. The ratio has ranged from 0.09 to 0.34 during this period. The trend shows a general decrease in the ratio from 0.34 in March 2020 to 0.09 in December 2023, indicating a lower reliance on debt to finance the company's operations.
The ratio remained relatively stable around the 0.10 to 0.20 range from 2019 to 2022, with slight variations quarter over quarter. However, there was a notable spike in the ratio to 0.34 in March 2020, suggesting a higher proportion of debt in the capital structure during that period.
Overall, the downward trend in the debt-to-capital ratio since March 2020 signifies a potential improvement in Floor & Decor's financial leverage and capital structure stability. This may indicate a more conservative approach to financing and a lower risk of financial distress related to excessive debt. Further monitoring of the ratio's trajectory will be essential to assess the company's ongoing debt management strategies and financial health.
Peer comparison
Dec 31, 2023