Enpro Industries (NPO)
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 | 638,700 | 775,100 | 963,900 | 487,500 | 625,200 |
| Total stockholders’ equity | US$ in thousands | 1,409,700 | 1,395,100 | 1,270,300 | 1,081,400 | 896,600 |
| Debt-to-equity ratio | 0.45 | 0.56 | 0.76 | 0.45 | 0.70 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $638,700K ÷ $1,409,700K
= 0.45
The debt-to-equity ratio for Enpro Inc has fluctuated over the past five years. In 2023, the ratio decreased to 0.46 from 0.57 in 2022. This suggests that the company's reliance on debt relative to equity has decreased, indicating a stronger financial position in terms of leverage. In 2021, the ratio was significantly higher at 0.89, indicating a higher proportion of debt to equity, which could imply higher financial risk. The ratio in 2020 was the same as in 2023, at 0.46, showing consistency year over year. In 2019, the ratio was 0.71, indicating a moderate level of debt compared to equity.
Overall, the trend in the debt-to-equity ratio suggests that Enpro Inc has managed its leverage position well, with a recent decrease in the ratio indicating a more conservative approach to financing its operations. However, it is important to consider the reasons behind these fluctuations and to assess the company's overall financial health in conjunction with other financial ratios and factors.