Callaway Golf Company (MODG)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,457,900 | 1,518,200 | 1,176,300 | 1,025,300 | 650,564 |
| Total stockholders’ equity | US$ in thousands | 2,407,700 | 3,878,200 | 3,774,300 | 3,682,900 | 675,644 |
| Debt-to-equity ratio | 0.61 | 0.39 | 0.31 | 0.28 | 0.96 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,457,900K ÷ $2,407,700K
= 0.61
The debt-to-equity ratio of Callaway Golf Company has shown a fluctuating trend over the past five years. As of December 31, 2020, the ratio stood at 0.96, indicating that the company had higher levels of debt relative to its equity. However, there has been a significant decrease in the ratio over the subsequent years. By December 31, 2021, the ratio had decreased to 0.28, signaling a notable improvement in the company's debt management.
The trend continued as of December 31, 2022, with the ratio slightly increasing to 0.31 but still remaining at a relatively low level compared to the initial year. In 2023, the ratio rose further to 0.39, suggesting a gradual rise in the company's debt relative to its equity. By December 31, 2024, the ratio had increased to 0.61, indicating a higher proportion of debt compared to equity.
Overall, the debt-to-equity ratio of Callaway Golf Company has shown variability over the years, with fluctuations in the level of debt in relation to equity. It is essential for investors to monitor this ratio to assess the company's leverage and financial risk.
Peer comparison
Dec 31, 2024