Graham Holdings Co (GHC)

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	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-equity ratio		0.19	0.15	0.12	0.13	0.13

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $745,082K ÷ $3,975,740K
= 0.19

The debt-to-equity ratio of Graham Holdings Co. has shown a slightly increasing trend over the past five years, fluctuating within a relatively narrow range. The ratio increased from 0.15 in 2019 to 0.20 in 2023.

A debt-to-equity ratio of 0.20 in 2023 indicates that for every dollar of equity, Graham Holdings Co. has $0.20 in debt. This implies that the company relies more on equity financing compared to debt, which could be viewed positively by investors and creditors.

It is important to note that a low and stable debt-to-equity ratio like this suggests that the company has been managing its debt levels prudently over the years. However, it also indicates that there is room for the company to potentially take on more debt to finance growth opportunities if needed.

Overall, the gradual increase in the debt-to-equity ratio over the period reflects a balanced capital structure for Graham Holdings Co., providing a sense of financial stability while also leaving room for future leveraging if required.