Myers Industries Inc (MYE)

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	31,989	93,962	90,945	37,582	77,176
Total stockholders’ equity	US$ in thousands	292,800	256,427	209,325	189,100	166,682
Debt-to-capital ratio		0.10	0.27	0.30	0.17	0.32

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $31,989K ÷ ($31,989K + $292,800K)
= 0.10

The debt-to-capital ratio of Myers Industries Inc. has shown a decreasing trend over the past five years, implying a relatively lower reliance on debt to finance its operations and investments. In particular, the ratio has declined from 0.32 in 2019 to 0.19 in 2023. This decreasing trend suggests that the company has been effectively managing its debt levels and optimizing its capital structure.

A lower debt-to-capital ratio indicates that Myers Industries relies more on its equity to finance its operations, which may be viewed positively by investors and creditors as it signifies lower financial risk and potentially greater stability. The company's ability to reduce its debt relative to its total capital over the years reflects prudent financial management and a commitment to strengthening its financial position.

It is important to note, however, that the debt-to-capital ratio should be analyzed in conjunction with other financial metrics and considering industry benchmarks to gain a comprehensive understanding of the company's overall financial health and leverage position.