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.