Callaway Golf Company (MODG)
Debt-to-capital ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,457,900 | 1,461,200 | 1,464,500 | 1,519,200 | 1,518,200 | 1,521,500 | 1,525,400 | 1,529,500 | 1,176,300 | 1,065,900 | 1,067,400 | 1,070,500 | 1,025,300 | 1,049,020 | 1,064,430 | 1,174,990 | 650,564 | 651,011 | 628,851 | 453,774 |
| Total stockholders’ equity | US$ in thousands | 2,407,700 | 3,935,600 | 3,933,500 | 3,887,000 | 3,878,200 | 3,951,900 | 3,932,700 | 3,811,100 | 3,774,300 | 3,806,500 | 3,790,200 | 3,700,500 | 3,682,900 | 3,721,930 | 3,739,460 | 3,612,820 | 675,644 | 688,534 | 624,548 | 759,967 |
| Debt-to-capital ratio | 0.38 | 0.27 | 0.27 | 0.28 | 0.28 | 0.28 | 0.28 | 0.29 | 0.24 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.25 | 0.49 | 0.49 | 0.50 | 0.37 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,457,900K ÷ ($1,457,900K + $2,407,700K)
= 0.38
The debt-to-capital ratio of Callaway Golf Company has been fluctuating over the years based on the provided data. The ratio stood at 0.37 as of March 31, 2020, indicating that 37% of the company's capital structure was financed through debt. Subsequently, the ratio increased to 0.50 by June 30, 2020, signaling a higher reliance on debt. Throughout the following quarters of 2020 and into 2021, the ratio remained relatively stable around 0.49.
However, a significant improvement was observed in the company's debt-to-capital ratio starting from March 31, 2021, where it dropped to 0.25 and continued to decrease to 0.22 by June 30, 2021. This trend of declining debt relative to capital continued from September 30, 2021, through December 31, 2022, remaining at 0.22.
There was a slight uptick in the ratio to 0.24 by December 31, 2022, which then further increased to 0.29 by March 31, 2023. However, the ratio decreased to 0.27 by June 30, 2024, where it remained stable until the end of the year. Finally, the ratio increased again to 0.38 by December 31, 2024, indicating that 38% of the company's capital structure was comprised of debt.
Overall, it can be observed that there have been fluctuations in Callaway Golf Company's debt-to-capital ratio over the years, indicating changes in the company's leverage and financial risk.
Peer comparison
Dec 31, 2024