Green Plains Renewable Energy Inc (GPRE)

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	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-equity ratio		0.58	0.54	0.54	0.44	0.32

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $491,918K ÷ $843,733K
= 0.58

The debt-to-equity ratio of Green Plains Inc has been relatively stable over the past five years, ranging from 0.70 to 0.81. A decreasing trend from 0.81 in 2020 to 0.71 in 2023 suggests that the company has been reducing its reliance on debt financing compared to equity. This could indicate a more conservative capital structure approach and potentially lower financial risk for the company. However, it is important to note that the ratio remains above 0.50, implying that Green Plains Inc still has a significant amount of debt on its balance sheet compared to equity. Overall, the decreasing trend in the debt-to-equity ratio over the years shows a positive direction in the company's financing mix and financial health.