NewMarket Corporation (NEU)

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	643,622	1,003,740	789,853	598,848	642,941
Total stockholders’ equity	US$ in thousands	1,077,060	762,407	762,129	759,824	683,098
Debt-to-capital ratio		0.37	0.57	0.51	0.44	0.48

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $643,622K ÷ ($643,622K + $1,077,060K)
= 0.37

The debt-to-capital ratio of NewMarket Corp. has shown fluctuating trends over the past five years, indicating variations in the company's debt and capital structure.

In 2023, the debt-to-capital ratio decreased to 0.38 from 0.57 in 2022, suggesting a lower proportion of debt relative to the total capital employed by the company. This could indicate successful debt reduction or increased capital infusion during the year, potentially improving the company's financial stability and solvency.

Comparing the ratios over the five-year period, it is evident that the ratio peaked in 2021 at 0.60 and reached its lowest point in 2023 at 0.38. The higher ratio in 2021 may suggest a higher reliance on debt financing relative to capital reserves in that particular year, which could have been driven by strategic decisions or financial needs.

Overall, a decreasing trend in the debt-to-capital ratio from 2021 to 2023 reflects a potential shift towards a more balanced and sustainable capital structure, as the company manages its debt levels in relation to its overall capital base. This trend could indicate improved financial health and risk management by NewMarket Corp. over the analyzed period. However, it is important to consider the specific industry context, market conditions, and strategic objectives of the company when evaluating the implications of these variations in the debt-to-capital ratio.