MSA Safety (MSA)

Debt-to-equity 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-equity ratio		0.59	0.61	0.72	0.34	0.45

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $575,170K ÷ $966,802K
= 0.59

The debt-to-equity ratio of MSA Safety Inc has remained relatively stable over the past five years, ranging from 0.38 to 0.72. A lower debt-to-equity ratio indicates a lower level of financial leverage, suggesting that the company relies more on equity financing rather than debt to fund its operations.

In 2020, the ratio was at its lowest point of 0.38, indicating a conservative financial structure with a higher proportion of equity in relation to debt. However, in 2021, the ratio increased to 0.72, reflecting a higher level of debt compared to equity, which may pose increased financial risk.

For the most recent year, 2023, the debt-to-equity ratio reverted back to 0.62, consistent with the ratio in 2022. This suggests that MSA Safety Inc has maintained a relatively balanced capital structure with a moderate level of debt relative to equity.

Overall, the stability of the debt-to-equity ratio indicates that MSA Safety Inc has managed its capital structure effectively during the period under review, maintaining a prudent level of debt while also leveraging equity to support its business activities.