NewMarket Corporation (NEU)

Debt-to-assets 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	643,622	779,401	916,179	957,958	1,003,740	1,008,520	911,295	841,074	789,853	991,919	990,551	990,189	598,848	608,702	690,292	740,511	642,941	675,398	706,085	788,357
Total assets	US$ in thousands	2,308,870	2,290,400	2,366,140	2,350,770	2,406,820	2,336,840	2,330,670	2,281,550	2,558,440	2,437,220	2,478,710	2,399,390	1,933,880	1,880,120	1,799,140	1,933,680	1,885,130	1,771,000	1,766,980	1,798,190
Debt-to-assets ratio		0.28	0.34	0.39	0.41	0.42	0.43	0.39	0.37	0.31	0.41	0.40	0.41	0.31	0.32	0.38	0.38	0.34	0.38	0.40	0.44

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 been fluctuating over the past eight quarters. The trend shows a general increase from Q1 2022 to Q4 2022, peaking at 0.43 in Q4 2022. However, since then, the ratio has been gradually decreasing, indicating a lower reliance on debt financing to fund the company's assets.

As of Q4 2023, the debt-to-assets ratio stands at 0.29, which suggests that only 29% of NewMarket Corp.'s total assets are financed by debt. This indicates a strong solvency position, as the company has a higher proportion of assets financed by equity rather than debt.

Overall, the decreasing trend in the debt-to-assets ratio in recent quarters indicates that NewMarket Corp. has been managing its debt levels effectively and improving its financial stability. However, it is essential to monitor future changes in the ratio to ensure that the company's debt remains at a manageable level relative to its assets.