NewMarket Corporation (NEU)

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	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 stockholders’ equity	US$ in thousands	1,077,060	971,943	892,740	821,800	762,407	667,376	721,335	760,090	762,129	772,773	849,210	810,355	759,824	723,526	635,285	639,249	683,098	629,338	589,176	538,196
Debt-to-equity ratio		0.60	0.80	1.03	1.17	1.32	1.51	1.26	1.11	1.04	1.28	1.17	1.22	0.79	0.84	1.09	1.16	0.94	1.07	1.20	1.46

December 31, 2023 calculation

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

The trend in NewMarket Corp.'s debt-to-equity ratio over the past eight quarters indicates a fluctuating pattern. The ratio reached its lowest point in Q4 2023 at 0.62, indicating lower reliance on debt compared to equity. This suggests a healthier financial position with less financial leverage.

However, in the preceding quarters, the ratio steadily increased before reaching a peak in Q2 2022 at 1.51, indicating a higher proportion of debt relative to equity. This heightened leverage could potentially increase financial risk for the company, as higher debt levels typically come with higher interest payments and financial constraints.

Subsequently, there was a decline in the debt-to-equity ratio in the following quarters until Q4 2023, indicating a reduction in the debt burden relative to equity. Overall, NewMarket Corp. may have adjusted its capital structure to strike a balance between debt and equity financing, considering both the benefits of leveraging and the potential risks associated with debt.

It is essential for stakeholders to closely monitor this ratio in future periods to assess the company's ability to meet its financial obligations, manage risks effectively, and make informed investment decisions.