NewMarket Corporation (NEU)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	643,622	1,003,740	789,853	598,848	642,941
Total assets	US$ in thousands	2,308,870	2,406,820	2,558,440	1,933,880	1,885,130
Debt-to-assets ratio		0.28	0.42	0.31	0.31	0.34

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $643,622K ÷ $2,308,870K
= 0.28

The debt-to-assets ratio of NewMarket Corp. has exhibited fluctuations over the past five years. In 2023, the ratio decreased to 0.29 from 0.43 in 2022, indicating a lower proportion of debt relative to total assets. This reduction suggests improved financial stability as the company has less dependency on debt financing.

Comparing the 2023 ratio to earlier years, it is notably lower than the ratios of 0.46 in 2021 and 0.35 in 2019, signifying a more conservative capital structure. However, the 2023 ratio is marginally higher than the 0.31 ratio in 2020, indicating a slight increase in debt relative to assets.

Overall, the downward trend in the debt-to-assets ratio from 2021 to 2023 reflects a more balanced mix of debt and equity in the company's capital structure, potentially enhancing its long-term financial sustainability and creditworthiness.