Mister Car Wash Inc (MCW)
Debt-to-equity 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-equity ratio | 0.98 | 1.12 | 1.36 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $897,424K ÷ $915,035K
= 0.98
The debt-to-equity ratio measures the proportion of a company's financing that comes from debt compared to equity. A lower ratio indicates less reliance on debt for funding, while a higher ratio suggests higher financial leverage.
From the data provided:
- In 2023, Mister Car Wash Inc had a debt-to-equity ratio of 1.00, which signifies that the company had an equal amount of debt and equity in its capital structure.
- In 2022, the ratio increased to 1.14, indicating a slightly higher reliance on debt compared to equity as the company's debt increased relative to equity.
- In 2021, the ratio further increased to 1.39, signifying a significant increase in the company's debt relative to equity, indicating higher financial leverage.
The decreasing trend in the debt-to-equity ratio from 2021 to 2023 suggests that Mister Car Wash Inc has been gradually reducing its reliance on debt for financing its operations. This trend may indicate improved financial stability and reduced financial risk over time. However, it is essential to assess the absolute levels of debt and equity in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall financial health and sustainability.
Peer comparison
Dec 31, 2023