Innospec Inc (IOSP)
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 | — | — | — | 0 | 58,600 |
| Total stockholders’ equity | US$ in thousands | 1,147,100 | 1,038,000 | 1,032,400 | 944,400 | -74,400 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | — |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,147,100K
= 0.00
The debt-to-equity ratio of Innospec Inc has been consistently low over the past five years, with a ratio of 0.00 reported at the end of each year from 2020 to 2023. This indicates that the company has not relied heavily on debt to finance its operations and growth, opting instead for a more equity-funded capital structure.
The sudden drop from a ratio of 0.07 in 2019 to 0.00 in subsequent years suggests that the company may have paid off a significant portion of its debt or increased its equity, leading to a more favorable debt-to-equity ratio. Overall, the low debt-to-equity ratio signifies a lower financial risk for the company as it indicates a lower level of financial leverage and reliance on borrowed funds. Innospec Inc's consistent low debt-to-equity ratio reflects a conservative approach to capital structure management and financial stability.
Peer comparison
Dec 31, 2023