Godaddy Inc (GDDY)
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 | 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-equity ratio | 61.07 | — | 47.22 | — | 3.08 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,798,500K ÷ $62,200K
= 61.07
The debt-to-equity ratio of Godaddy Inc has exhibited variability over the years, as per the provided data. In 2019, the ratio was significantly low at 3.10, indicating a conservative capital structure with a lower reliance on debt financing relative to equity. However, this ratio increased notably to 47.52 in 2021 and further to 61.36 in 2023, suggesting a substantial increase in the company's debt levels relative to shareholders' equity. The absence of data for 2020 and 2022 limits a detailed year-on-year analysis. The upward trend in the debt-to-equity ratio in recent years may signal increased debt utilization to fund operations or growth initiatives, potentially raising concerns about the company's leverage and financial risk. Further assessment of the reasons behind this increasing trend and its implications on the company's financial health and stability would be advisable.
Peer comparison
Dec 31, 2023