LCI Industries (LCII)

Debt-to-equity 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-equity ratio		0.62	0.66	0.67	0.78	0.79	0.73	0.79	1.00	1.13	0.98	0.96	0.76	0.79	0.70	0.83	0.93	0.77	0.34	0.33	0.40

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 for LCI Industries has shown some fluctuations over the recent quarters, ranging from 0.63 to 1.02. A lower debt-to-equity ratio generally indicates lower financial risk and suggests that the company is relying more on equity financing rather than debt financing to support its operations and growth.

In the first three quarters of 2023, the debt-to-equity ratio increased steadily from 0.63 to 0.80, which may suggest a growing reliance on debt to finance the company's activities during that period. However, in Q4 2023, the ratio decreased to 0.66, indicating a potential reduction in debt relative to equity.

Comparing the current ratio to the same quarter in the previous year, there has been some improvement as the ratio was higher in Q4 2022 at 0.81 compared to Q4 2023 at 0.66. This reduction suggests a potential decrease in the company's debt levels or an increase in equity during this period.

Overall, it is important to closely monitor the debt-to-equity ratio to assess the company's financial health and risk management strategies. Investors and stakeholders should continue to track these ratios to understand the company's leverage and sustainability in managing its financial obligations.