Mister Car Wash Inc (MCW)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Long-term debt | US$ in thousands | 897,424 | 895,830 | 896,336 |
| Total stockholders’ equity | US$ in thousands | 915,035 | 801,128 | 657,152 |
| Debt-to-capital ratio | 0.50 | 0.53 | 0.58 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $897,424K ÷ ($897,424K + $915,035K)
= 0.50
The debt-to-capital ratio for Mister Car Wash Inc has been declining over the past three years, indicating a positive trend in the company's capital structure. In 2021, the ratio stood at 0.58, meaning that 58% of the company's capital was financed through debt. By the end of 2023, this ratio had decreased to 0.50, indicating that debt financing comprised 50% of the company's capital.
This reduction in the debt-to-capital ratio suggests that Mister Car Wash Inc has been gradually reducing its reliance on debt to fund its operations and investments. A lower debt-to-capital ratio generally indicates lower financial risk and greater financial stability for the company, as it implies a larger portion of the capital is funded by equity rather than debt.
Overall, the decreasing trend in the debt-to-capital ratio for Mister Car Wash Inc is a positive indicator of the company's financial health and efficient capital structure management. Further monitoring of this ratio will be essential to assess the company's ability to maintain a balanced capital structure in the future.
Peer comparison
Dec 31, 2023