Green Plains Renewable Energy Inc (GPRE)

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	491,918	495,243	514,006	287,299	243,990
Total stockholders’ equity	US$ in thousands	843,733	910,031	950,500	646,852	751,905
Debt-to-capital ratio		0.37	0.35	0.35	0.31	0.24

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $491,918K ÷ ($491,918K + $843,733K)
= 0.37

The debt-to-capital ratio of Green Plains Inc has remained relatively stable over the past five years, ranging from 0.41 to 0.45. This ratio represents the proportion of the company's total debt to its total capital, which includes both debt and equity. A decreasing trend in the debt-to-capital ratio indicates a lower reliance on debt financing for the company's operations and growth. Conversely, an increasing trend may suggest higher leverage and potential financial risks. In the case of Green Plains Inc, the slight fluctuations in the debt-to-capital ratio suggest a balanced mix of debt and equity in its capital structure, reflecting a moderate level of financial leverage over the period analyzed.