IDEX Corporation (IEX)
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 | 1,325,100 | 1,468,700 | 1,190,300 | 1,044,400 | 848,864 |
| Total stockholders’ equity | US$ in thousands | 3,541,400 | 3,039,300 | 2,803,100 | 2,540,200 | 2,263,230 |
| Debt-to-capital ratio | 0.27 | 0.33 | 0.30 | 0.29 | 0.27 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,325,100K ÷ ($1,325,100K + $3,541,400K)
= 0.27
The debt-to-capital ratio of Idex Corporation has fluctuated over the past five years, ranging from 0.27 in 2019 and 2023 to 0.33 in 2022. The ratio measures the proportion of the company's capital structure that is financed by debt, with a lower ratio indicating lower reliance on debt financing.
Idex Corporation's debt-to-capital ratio indicates that the company has maintained a relatively conservative approach to debt financing over the years, with a gradual decrease from 0.33 in 2022 to 0.27 in 2023. This suggests that the company's capital structure has become less reliant on debt and more balanced with equity financing.
Overall, the trend in Idex Corporation's debt-to-capital ratio reflects a prudent financial strategy, with the company effectively managing its debt levels relative to its total capital structure. Monitoring this ratio over time can provide valuable insights into the company's financial health and risk management practices.
Peer comparison
Dec 31, 2023