NewMarket Corporation (NEU)

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	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-equity ratio		0.60	1.32	1.04	0.79	0.94

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $643,622K ÷ $1,077,060K
= 0.60

The debt-to-equity ratio of NewMarket Corp. has exhibited varying trends over the past five years. In 2023, the ratio stands at 0.62, indicating that the company's debt level relative to its equity has decreased significantly compared to the previous year. This suggests that NewMarket Corp. has reduced its reliance on debt financing and strengthened its equity position, which can be viewed positively by investors and creditors.

The ratio was considerably higher in 2022 and 2021 at 1.35 and 1.53, respectively, signifying higher debt levels compared to equity during those years. This could indicate that the company was highly leveraged and potentially exposed to financial risk. However, the decrease in the debt-to-equity ratio in 2023 reflects a positive shift towards a more balanced capital structure.

In 2020 and 2019, the ratio was 0.80 and 0.96, respectively, showing a moderate level of debt relative to equity. These ratios suggest a relatively stable financial position for NewMarket Corp. during those years.

Overall, the decreasing trend in the debt-to-equity ratio from 2022 to 2023 signals improved financial health and a more conservative approach to capital structure by NewMarket Corp. Investors and stakeholders may view this trend positively as it indicates a reduced financial risk and stronger equity base in the company.