Godaddy Inc (GDDY)
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 | 3,798,500 | 3,802,300 | 3,806,000 | 3,809,600 | 3,812,900 | 3,842,900 | 3,848,000 | 3,852,800 | 3,858,200 | 3,863,700 | 3,869,300 | 3,874,900 | 3,090,100 | 3,097,400 | 2,368,000 | 2,372,300 | 2,376,800 | 2,383,100 | 2,387,700 | 2,390,000 |
| Total stockholders’ equity | US$ in thousands | 62,200 | -976,300 | -667,100 | -357,900 | -331,800 | -278,400 | -447,200 | -470,500 | 81,700 | -102,800 | -33,300 | -72,800 | -12,900 | -164,200 | -261,300 | 480,700 | 772,000 | 667,900 | 945,100 | 910,400 |
| Debt-to-capital ratio | 0.98 | 1.35 | 1.21 | 1.10 | 1.10 | 1.08 | 1.13 | 1.14 | 0.98 | 1.03 | 1.01 | 1.02 | 1.00 | 1.06 | 1.12 | 0.83 | 0.75 | 0.78 | 0.72 | 0.72 |
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 of Godaddy Inc has fluctuated over the past eight quarters, ranging from a low of 1.08 in Q3 2022 to a high of 1.34 in Q3 2023. This ratio reflects the proportion of the company's capital structure that is financed through debt. A ratio above 1 indicates that the company's debt exceeds its capital, suggesting a higher level of leverage.
The trend in the debt-to-capital ratio shows an increase in leverage from Q3 2022 to Q3 2023, followed by a slight decline in Q4 2023. This could indicate a shift in the company's capital structure towards higher debt levels. A high debt-to-capital ratio can be a cause for concern as it may indicate financial risk and an increased dependence on debt financing.
It is essential for investors and analysts to closely monitor changes in the debt-to-capital ratio, as excessive leverage can impact the company's financial stability and ability to meet its debt obligations. Additionally, a high debt-to-capital ratio may result in higher interest expenses and limit the company's flexibility in pursuing growth opportunities or weathering economic downturns.
Peer comparison
Dec 31, 2023