Hayward Holdings Inc (HAYW)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,098,440 | 1,109,700 | 995,000 |
| Total stockholders’ equity | US$ in thousands | 1,311,460 | 1,223,030 | 1,369,510 |
| Debt-to-capital ratio | 0.46 | 0.48 | 0.42 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,098,440K ÷ ($1,098,440K + $1,311,460K)
= 0.46
Based on the data provided, Hayward Holdings Inc's debt-to-capital ratio has fluctuated over the past three years. In 2021, the ratio was 0.42, indicating that 42% of the company's capital was funded by debt. This ratio then increased to 0.47 in 2022 before decreasing to 0.45 in 2023.
A decreasing trend in the debt-to-capital ratio can suggest that the company is reducing its reliance on debt financing in relation to its overall capital structure. This may indicate improved financial stability and reduced financial risk for the company.
However, it is essential to consider the industry norms and the company's specific circumstances when interpreting this ratio. A higher debt-to-capital ratio could indicate a more aggressive capital structure, potentially leading to higher financial leverage and risk. Conversely, a lower ratio may signal a more conservative approach to financing operations.
Further analysis and comparison with industry benchmarks and peer companies would provide more insights into how Hayward Holdings Inc's debt-to-capital ratio aligns with market standards and its competitive landscape.
Peer comparison
Dec 31, 2023