Graham Holdings Co (GHC)

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	745,082	570,547	525,752	506,103	430,650
Total stockholders’ equity	US$ in thousands	3,975,740	3,731,380	4,399,580	3,759,300	3,319,240
Debt-to-capital ratio		0.16	0.13	0.11	0.12	0.11

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $745,082K ÷ ($745,082K + $3,975,740K)
= 0.16

The debt-to-capital ratio of Graham Holdings Co. has shown a gradual increase over the past five years, rising from 0.13 in 2019 to 0.17 in 2023. This indicates that the proportion of the company's capital structure funded by debt has been increasing over time.

A higher debt-to-capital ratio suggests that the company is relying more on debt to finance its operations and investments, which could potentially increase financial risk. However, it's important to consider that debt can also be a cheaper source of financing compared to equity.

It would be beneficial to further investigate the reasons behind the increasing debt-to-capital ratio to understand the company's financing strategy and assess its financial health and stability.