Graco Inc (GGG)
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 | 0 | 75,000 | 75,000 | 150,000 | 164,298 |
| Total stockholders’ equity | US$ in thousands | 2,224,220 | 1,859,650 | 1,709,340 | 1,283,900 | 1,024,930 |
| Debt-to-capital ratio | 0.00 | 0.04 | 0.04 | 0.10 | 0.14 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $0K ÷ ($0K + $2,224,220K)
= 0.00
The debt-to-capital ratio of Graco Inc has shown a declining trend over the past five years, indicating a decreasing reliance on debt financing relative to total capital. In 2023, the company reported a debt-to-capital ratio of 0.00, suggesting that it had no debt relative to its total capital, reflecting a conservative financial structure. This contrasts with the debt-to-capital ratio of 0.14 in 2019, indicating a higher level of debt financing in the past.
The decreasing trend in the debt-to-capital ratio suggests that Graco Inc has been progressively reducing its debt levels or increasing its equity capital base over the years. A lower debt-to-capital ratio can signify improved financial stability and reduced financial risk, as the company is less reliant on borrowed funds to finance its operations. Overall, the decreasing debt-to-capital ratio indicates a positive trend towards a more financially sustainable capital structure for Graco Inc.
Peer comparison
Dec 31, 2023