LCI Industries (LCII)

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	846,834	1,095,890	1,231,960	720,418	612,906
Total stockholders’ equity	US$ in thousands	1,355,040	1,381,010	1,092,880	908,326	800,672
Debt-to-equity ratio		0.62	0.79	1.13	0.79	0.77

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $846,834K ÷ $1,355,040K
= 0.62

The debt-to-equity ratio of LCI Industries has fluctuated over the past five years. In 2023, the ratio decreased to 0.63 from the previous year's 0.81, signaling a reduction in financial leverage and a stronger equity position relative to debt. This improvement suggests the company may be effectively managing its debt levels or increasing its equity base. Comparing to 2021 when the ratio was 1.19, the current level indicates a significant reduction in financial risk. However, it is noteworthy that the ratio has shown some variability in recent years, with fluctuations observed between 0.79 and 1.19. Overall, a decreasing trend in the debt-to-equity ratio can indicate a more stable financial structure and lower risk for the company, assuming it is not achieved at the expense of growth or profitability.