Callaway Golf Company (MODG)
Debt-to-capital 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 | 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 | 443,259 | 445,019 | 465,826 | 465,756 |
| Total stockholders’ equity | US$ in thousands | 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 | 767,353 | 777,356 | 761,936 | 741,854 |
| Debt-to-capital ratio | 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 | 0.37 | 0.36 | 0.38 | 0.39 |
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 been relatively stable over the past eight quarters, ranging from 0.31 to 0.40. This ratio indicates that, on average, the company's debt represents roughly 31% to 40% of its total capital structure.
The increasing trend in the ratio from Q4 2022 to Q4 2023 suggests a higher reliance on debt financing compared to equity. While a higher debt-to-capital ratio can indicate greater financial risk due to increased leverage, it can also signal potential opportunities for growth and expansion if the company can effectively manage its debt levels and generate sufficient returns.
Overall, further analysis of the company's debt maturity, interest coverage ratios, and overall capital structure would be necessary to gain a more comprehensive understanding of the implications of Topgolf Callaway Brands Corp's debt-to-capital ratio.
Peer comparison
Dec 31, 2023