Enpro Industries (NPO)

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	638,700	640,500	767,600	771,200	775,100	868,100	876,700	915,300	963,900	485,500	486,300	486,900	487,500	489,300	490,300	491,100	625,200	665,900	427,900	472,800
Total stockholders’ equity	US$ in thousands	1,409,700	1,407,900	1,414,400	1,435,100	1,395,100	1,267,800	1,280,500	1,265,500	1,270,300	1,140,700	1,118,100	1,080,900	1,081,400	1,065,900	1,084,200	1,071,900	896,600	876,400	876,200	871,100
Debt-to-equity ratio		0.45	0.45	0.54	0.54	0.56	0.68	0.68	0.72	0.76	0.43	0.43	0.45	0.45	0.46	0.45	0.46	0.70	0.76	0.49	0.54

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 shown a decreasing trend over the past four quarters. The ratio decreased from 0.85 in Q1 2022 to 0.46 in Q4 2023. This indicates that the company has been reducing its reliance on debt and improving its equity position relative to debt financing.

A debt-to-equity ratio below 1 implies that the company is relying more on equity financing rather than debt financing to fund its operations and growth. Enpro Inc has consistently maintained a ratio below 1 in the most recent quarters, which reflects a healthier financial structure and lower financial risk.

The decreasing trend in the debt-to-equity ratio could be a positive sign for investors and creditors as it indicates the company's ability to manage its debt levels effectively. However, it is important to monitor this trend to ensure that the company maintains a balanced capital structure that supports its growth objectives while managing financial risks effectively.