Enviri Corporation (NVRI)
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 | 1,401,440 | 1,337,000 | 1,359,450 | 1,271,190 | 775,498 |
| Total stockholders’ equity | US$ in thousands | 523,151 | 569,442 | 748,160 | 657,154 | 741,580 |
| Debt-to-capital ratio | 0.73 | 0.70 | 0.65 | 0.66 | 0.51 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,401,440K ÷ ($1,401,440K + $523,151K)
= 0.73
The debt-to-capital ratio of Enviri Corp has shown a fluctuating trend over the past five years. Initially, the ratio was 0.51 in 2019, indicating a relatively lower proportion of debt in the capital structure. However, there was a gradual increase in the ratio to 0.66 in 2020 and then a further rise to 0.65 in 2021. This suggests an increasing reliance on debt financing compared to equity financing during these periods.
Subsequently, in 2022, the ratio increased to 0.70, indicating a higher debt component within the capital structure. This trend continued in 2023 with a debt-to-capital ratio of 0.73, reflecting a further increase in debt relative to capital.
Overall, the increasing trend in the debt-to-capital ratio over the years may suggest a growing level of financial leverage within Enviri Corp's capital structure. It is essential for stakeholders to monitor this ratio to assess the company's ability to meet its debt obligations and manage financial risk effectively.