MSA Safety (MSA)

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 575,170 565,445 597,651 287,157 328,394
Total stockholders’ equity US$ in thousands 966,802 923,741 834,388 839,201 725,800
Debt-to-capital ratio 0.37 0.38 0.42 0.25 0.31

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $575,170K ÷ ($575,170K + $966,802K)
= 0.37

The debt-to-capital ratio of MSA Safety Inc has exhibited some fluctuation over the past five years. In 2023 and 2022, the ratio stood at 0.38, indicating that 38% of the company's capital structure was financed through debt. This ratio remained relatively stable compared to the prior year.

However, a notable increase in the debt-to-capital ratio was observed in 2021 when it reached 0.42, reflecting a higher proportion of debt in the company's capital mix. In contrast, the ratios for 2020 and 2019 were lower at 0.28 and 0.32, respectively, suggesting a lower reliance on debt financing during those years.

Overall, the debt-to-capital ratio of MSA Safety Inc has shown some variability, with the company indicating different levels of leverage in its capital structure over the past five years. The trend in the ratio should be carefully monitored to assess the company's financial health and its ability to manage debt effectively.