Fox Factory Holding Corp (FOXF)
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 | 373,528 | 0 | 360,953 | 377,088 | 0 |
| Total stockholders’ equity | US$ in thousands | 1,221,760 | 1,121,390 | 894,082 | 719,171 | 422,200 |
| Debt-to-capital ratio | 0.23 | 0.00 | 0.29 | 0.34 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $373,528K ÷ ($373,528K + $1,221,760K)
= 0.23
The debt-to-capital ratio for Fox Factory Holding Corp has fluctuated over the past five years. As of December 31, 2023, the ratio stood at 0.23, indicating that 23% of the company's capital structure was financed by debt.
Notably, in 2022 and 2019, the company had a debt-to-capital ratio of 0.00, implying that there was no debt in the capital structure during those years. This could suggest successful management of debt levels or temporary periods with minimal debt obligations.
In contrast, the ratio increased in 2021 and 2020 to 0.29 and 0.34, respectively, indicating a higher proportion of debt relative to total capital. This upward trend could signal increased leverage or borrowing to support business operations or growth initiatives during those years.
Overall, the debt-to-capital ratio provides insights into Fox Factory Holding Corp's debt utilization and financial risk profile, with lower ratios indicating lower debt dependence and potentially lower financial risk, while higher ratios suggest higher debt levels that could pose risks in terms of interest payments and financial stability.
Peer comparison
Dec 31, 2023