LCI Industries (LCII)

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	846,834	908,245	915,756	1,055,620	1,095,890	1,039,870	1,101,790	1,265,380	1,231,960	1,012,080	941,824	726,608	720,418	616,076	681,242	750,519	612,906	261,631	245,310	286,311
Total stockholders’ equity	US$ in thousands	1,355,040	1,372,140	1,370,900	1,359,510	1,381,010	1,423,560	1,394,360	1,259,250	1,092,880	1,031,140	986,176	959,587	908,326	875,562	816,630	807,803	800,672	777,381	752,876	721,679
Debt-to-capital ratio		0.38	0.40	0.40	0.44	0.44	0.42	0.44	0.50	0.53	0.50	0.49	0.43	0.44	0.41	0.45	0.48	0.43	0.25	0.25	0.28

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $846,834K ÷ ($846,834K + $1,355,040K)
= 0.38

The debt-to-capital ratio of LCI Industries has shown a declining trend over the past eight quarters. From Q1 2022 to Q4 2023, the ratio decreased from 0.51 to 0.38. This indicates that the company has been reducing its reliance on debt to finance its operations relative to its total capital structure.

A lower debt-to-capital ratio suggests that LCI Industries has a stronger financial position and is less leveraged, which may reduce financial risk and increase investor confidence. The consistent decrease in the ratio over time also implies that the company may be effectively managing its debt levels and capital structure.

Overall, the declining trend of the debt-to-capital ratio for LCI Industries reflects a positive financial performance and prudent financial management, highlighting the company's ability to balance its debt obligations with its overall capital base.