Innospec Inc (IOSP)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | 0 | 0 | 0 | 38,800 | 58,700 | 58,600 | 131,200 | 136,500 | 186,300 |
| Total stockholders’ equity | US$ in thousands | 1,147,100 | 1,125,400 | 1,092,200 | 1,078,200 | 1,038,000 | 1,089,400 | 1,067,900 | 1,068,200 | 1,032,400 | 992,500 | 973,600 | 958,600 | 944,400 | -64,300 | 899,200 | 943,800 | -74,400 | 881,800 | 862,700 | 848,400 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | 0.04 | 0.06 | — | 0.13 | 0.14 | 0.18 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,147,100K)
= 0.00
Based on the data provided for Innospec Inc's debt-to-capital ratio for each quarter from Q1 2022 to Q4 2023, it appears that the company consistently maintained a debt-to-capital ratio of 0.00 throughout this period. A debt-to-capital ratio of 0.00 indicates that the company has not been utilizing debt to finance its operations and investments, as its total debt is effectively zero compared to its total capital.
This may suggest that Innospec Inc has been predominantly relying on equity financing or internal funds to support its activities rather than taking on external debt. A low or zero debt-to-capital ratio can be seen as a positive indicator of financial stability and lower financial risk, as the company is not burdened with significant interest payments or debt repayment obligations.
However, it is important to consider that a very low debt-to-capital ratio may also indicate underutilization of debt financing opportunities that could potentially enhance returns on equity. Investors and stakeholders may want to further investigate the company's capital structure strategy and evaluate the reasons behind its consistent zero debt-to-capital ratio over multiple quarters.
Peer comparison
Dec 31, 2023