Callaway Golf Company (MODG)

Debt-to-capital ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Long-term debt US$ in thousands 1,518,200 1,176,300 1,025,300 650,564 443,259
Total stockholders’ equity US$ in thousands 3,878,200 3,774,300 3,682,900 675,644 767,353
Debt-to-capital ratio 0.28 0.24 0.22 0.49 0.37

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,518,200K ÷ ($1,518,200K + $3,878,200K)
= 0.28

The debt-to-capital ratio of Topgolf Callaway Brands Corp has fluctuated over the past five years, with the ratio ranging from 0.29 to 0.50. In 2023, the ratio increased to 0.40 from 0.35 in 2022. This indicates that the company's reliance on debt to finance its operations and investments relative to its total capital has grown slightly.

A higher debt-to-capital ratio may suggest a higher level of financial risk as the company is more leveraged, potentially leading to higher interest expenses and financial obligations. Conversely, a lower ratio implies a stronger financial position with a greater proportion of capital being funded through equity.

It is advisable for Topgolf Callaway Brands Corp to closely monitor its debt levels and ensure that any increase in debt is manageable and aligned with the company's growth and profitability targets, while also considering the associated risks and costs of debt financing.


Peer comparison

Dec 31, 2023

Company name
Symbol
Debt-to-capital ratio
Callaway Golf Company
MODG
0.28
YETI Holdings Inc
YETI
0.10