Godaddy Inc (GDDY)

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	3,798,500	3,812,900	3,858,200	3,090,100	2,376,800
Total stockholders’ equity	US$ in thousands	62,200	-331,800	81,700	-12,900	772,000
Debt-to-capital ratio		0.98	1.10	0.98	1.00	0.75

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,798,500K ÷ ($3,798,500K + $62,200K)
= 0.98

The debt-to-capital ratio measures the proportion of a company's total capital that is financed by debt. A higher ratio indicates a higher level of debt relative to capital, which may imply increased financial risk and leverage.

In the case of Godaddy Inc, the trend in the debt-to-capital ratio over the past five years shows some fluctuations. In 2023, the ratio decreased to 0.98 from 1.09 in 2022, suggesting a slight reduction in the reliance on debt to fund the company's operations. This could indicate a potential improvement in the company's financial stability.

Comparing the 2023 ratio to the ratios in 2021 and 2020, where it was also at 0.98 and 1.00 respectively, it appears that Godaddy Inc maintained a relatively stable level of debt in relation to its capital structure during these years.

However, the ratio was notably higher at 1.09 in 2022 compared to the other years, indicating a higher proportion of debt funding relative to capital. The decrease in the ratio in 2023 may suggest that the company might have managed to reduce its debt levels or raise capital through other means.

It's worth noting that the lowest ratio was seen in 2019 at 0.76, indicating a lower reliance on debt for financing in that year.

In summary, based on the trend observed, Godaddy Inc has shown some fluctuations in its debt-to-capital ratio over the past five years, with a slight decrease in 2023 potentially signaling a more conservative approach towards debt financing.