LCI Industries (LCII)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 846,834 | 1,095,890 | 1,231,960 | 720,418 | 612,906 |
| Total assets | US$ in thousands | 2,959,320 | 3,246,910 | 3,288,090 | 2,298,030 | 1,862,600 |
| Debt-to-assets ratio | 0.29 | 0.34 | 0.37 | 0.31 | 0.33 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $846,834K ÷ $2,959,320K
= 0.29
The debt-to-assets ratio for LCI Industries has fluctuated over the past five years, ranging from 0.29 to 0.40. A lower ratio indicates that the company relies less on debt financing to fund its assets, which can be seen as a positive sign of financial stability and lower default risk.
In 2021, the ratio was at its highest point of 0.40, which may suggest increased reliance on debt to support the company's assets during that period. However, the ratio decreased to 0.32 in 2020 and further to 0.29 in 2023, indicating a reduced dependency on debt financing in recent years.
Overall, the trend of decreasing debt-to-assets ratio from 2021 to 2023 indicates a potential shift towards a more conservative capital structure, with a greater proportion of assets being financed through equity rather than debt. Monitoring this trend over time can provide insights into the company's financial health and risk management strategies.
Peer comparison
Dec 31, 2023