Myers Industries Inc (MYE)

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	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-equity ratio		0.11	0.37	0.43	0.20	0.46

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $31,989K ÷ $292,800K
= 0.11

The debt-to-equity ratio of Myers Industries Inc. has shown a decreasing trend over the past five years, indicating improvements in the company's leverage position. The ratio has declined from 0.46 in 2019 to 0.23 in 2023. This suggests that the company has been reducing its reliance on debt financing in comparison to equity, which is generally viewed positively by investors and lenders.

A lower debt-to-equity ratio signifies that Myers Industries has a lower level of financial risk and is less dependent on borrowing to fund its operations. This can enhance the company's financial stability and ability to withstand economic downturns or fluctuations in the business environment.

The decreasing trend in the debt-to-equity ratio may also indicate that Myers Industries has been effectively managing its capital structure by generating sufficient internal funds to support its growth and investment activities without taking on excessive debt burden. Additionally, a lower ratio may improve the company's creditworthiness and potentially lead to better borrowing terms in the future.

Overall, the declining debt-to-equity ratio of Myers Industries Inc. suggests a prudent financial strategy and a stronger balance sheet position, which could contribute to long-term sustainability and value creation for the company and its stakeholders.