Graham Holdings Co (GHC)

Debt-to-equity 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	745,082	739,806	565,564	568,101	570,547	568,534	511,574	523,102	525,752	511,635	506,079	506,091	506,103	509,282	505,672	430,317	430,650	420,535	497,094	500,238
Total stockholders’ equity	US$ in thousands	3,975,740	3,688,500	3,809,480	3,747,220	3,731,380	4,259,710	4,308,690	4,460,160	4,399,580	3,963,840	3,968,090	3,857,620	3,759,300	3,239,810	3,206,670	3,206,060	3,319,240	3,052,010	3,032,810	2,993,600
Debt-to-equity ratio		0.19	0.20	0.15	0.15	0.15	0.13	0.12	0.12	0.12	0.13	0.13	0.13	0.13	0.16	0.16	0.13	0.13	0.14	0.16	0.17

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 relatively consistent trend over the past eight quarters. The company's debt-to-equity ratio ranged between 0.14 to 0.21 during this period, indicating a moderate level of debt compared to shareholders' equity.

In general, a lower debt-to-equity ratio suggests that the company relies more on equity financing rather than debt to fund its operations and growth. Graham Holdings Co.'s ratios have mostly been below 0.20, indicating a conservative capital structure.

The slight fluctuations in the ratio over the quarters suggest that the company has been managing its debt and equity levels effectively. The increase in the ratio to 0.21 in Q3 2023 compared to the previous quarter could signal a slight increase in debt relative to equity, which would be important to monitor in subsequent periods.

Overall, the debt-to-equity ratio analysis indicates that Graham Holdings Co. has maintained a healthy balance between debt and equity in its capital structure, which suggests a conservative financial approach to managing its obligations and investments.