Floor & Decor Holdings Inc (FND)
Debt-to-equity 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-equity ratio | 0.10 | 0.24 | 0.15 | 0.21 | 0.19 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $194,939K ÷ $1,930,990K
= 0.10
Floor & Decor Holdings Inc's debt-to-equity ratio has shown variability over the past five years. The ratio decreased significantly from 0.24 in 2022 to 0.10 in 2023, indicating a substantial reduction in the company's reliance on debt financing relative to shareholder equity. This improvement suggests that the company may have paid down debt, raised additional equity capital, or a combination of both.
Comparing the current ratio of 0.10 to historical data, it is notably lower than the ratio in 2021 and 2020, indicating a stronger financial position with less debt compared to equity. However, the ratio is slightly higher than in 2019, suggesting some fluctuation in the company's capital structure management over the years.
Overall, a lower debt-to-equity ratio generally indicates lower financial risk and greater financial stability for a company, as it implies that the company is less reliant on borrowed funds to finance its operations. This trend suggests a positive financial health and improved balance sheet strength for Floor & Decor Holdings Inc.
Peer comparison
Dec 31, 2023