Grocery Outlet Holding Corp (GO)

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 287,107 379,650
Total stockholders’ equity US$ in thousands 1,219,340 1,110,210 1,009,270 922,307 745,384
Debt-to-equity ratio 0.24 0.34 0.00 0.00 0.00

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $287,107K ÷ $1,219,340K
= 0.24

The debt-to-equity ratio of Grocery Outlet Holding Corp has shown a decreasing trend over the past five years, indicating a more conservative capital structure with a lower reliance on debt financing relative to equity. In 2023, the company's debt-to-equity ratio was 0.24, down from 0.34 in 2022. The presence of a debt-to-equity ratio greater than zero in the last two years suggests that the company has started to utilize debt as part of its capital structure, albeit prudently. It is important to note that in 2021, 2020, and 2019, the company reported a debt-to-equity ratio of 0.00, indicating a debt-free position during those years. This shift towards a more balanced mix of debt and equity financing may signal a strategic shift in the company's financial management approach. Overall, the decreasing trend in the debt-to-equity ratio reflects a lower financial risk and potentially improved financial stability for Grocery Outlet Holding Corp.


Peer comparison

Dec 31, 2023

Company name
Symbol
Debt-to-equity ratio
Grocery Outlet Holding Corp
GO
0.24
Kroger Company
KR
0.87
Sprouts Farmers Market LLC
SFM
0.00