Grocery Outlet Holding Corp (GO)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 287,107 | 379,650 | — | — | — |
| Total assets | US$ in thousands | 2,969,590 | 2,772,400 | 2,669,810 | 2,485,620 | 2,185,530 |
| Debt-to-assets ratio | 0.10 | 0.14 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $287,107K ÷ $2,969,590K
= 0.10
The debt-to-assets ratio of Grocery Outlet Holding Corp has exhibited a downward trend from 2019 to 2023. In 2019, the ratio was 0.00, indicating that the company had no debt compared to its total assets. This suggests a conservative financial structure with minimal reliance on debt financing.
However, starting from 2020, we see a gradual increase in the debt-to-assets ratio. By 2023, the ratio stands at 0.10, suggesting that the company's debt level relative to its total assets has increased to 10%. While the ratio is relatively low, it signifies a shift towards utilizing debt as a financing source.
It is essential to monitor this trend closely in the future as a higher debt-to-assets ratio can signal increased financial risk and potential challenges in servicing debt obligations. Overall, the company's debt management strategy appears to be changing, and continued monitoring of this ratio will be crucial for assessing the company's financial health and risk profile.
Peer comparison
Dec 31, 2023