Myers Industries Inc (MYE)

Debt-to-equity ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	31,989	33,987	52,986	62,784	93,962	97,961	103,956	92,450	90,945	111,339	57,833	70,928	37,582	37,501	37,420	37,338	77,176	77,080	76,983	76,887
Total stockholders’ equity	US$ in thousands	292,800	282,221	274,422	265,247	256,427	244,977	237,258	224,138	209,325	205,525	201,981	194,253	189,100	187,598	181,695	176,223	166,682	163,820	162,410	158,426
Debt-to-equity ratio		0.11	0.12	0.19	0.24	0.37	0.40	0.44	0.41	0.43	0.54	0.29	0.37	0.20	0.20	0.21	0.21	0.46	0.47	0.47	0.49

December 31, 2023 calculation

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

Myers Industries Inc.'s debt-to-equity ratio has shown a decreasing trend over the past eight quarters. In Q4 2022, the ratio stood at 0.40 and has since decreased consistently to 0.23 in Q4 2023. This decline indicates that the company has been reducing its reliance on debt in relation to equity.

A lower debt-to-equity ratio can signify a healthier financial position as it implies less financial risk and lower interest expenses. It suggests that the company is using less debt financing compared to its equity, which could be a positive signal for investors and creditors.

The downward trend in the debt-to-equity ratio may imply that Myers Industries Inc. is effectively managing its financial leverage and debt levels. By maintaining a declining trend in this ratio, the company may be enhancing its financial stability and reducing its vulnerability to economic downturns or interest rate fluctuations.

However, it is important to note that the optimal level of debt-to-equity ratio varies across industries and companies, and a low ratio is not always necessarily better. It is essential to consider other financial metrics and factors in conjunction with the debt-to-equity ratio to get a comprehensive understanding of Myers Industries Inc.'s overall financial health and risk profile.