Enviri Corporation (NVRI)
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 | 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-equity ratio | 2.68 | 2.35 | 1.82 | 1.93 | 1.05 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,401,440K ÷ $523,151K
= 2.68
The debt-to-equity ratio of Enviri Corp has been increasing over the past five years, indicating a growing reliance on debt financing relative to equity financing. The ratio stood at 2.74 as of December 31, 2023, compared to 2.38 in 2022, 1.84 in 2021, 1.97 in 2020, and 1.05 in 2019.
A debt-to-equity ratio of 2.74 as of December 31, 2023, suggests that for every dollar of equity, Enviri Corp has $2.74 of debt. This level of leverage may indicate that the company is exposed to higher financial risk due to its significant debt obligations. Investors and creditors closely monitor this ratio as a higher proportion of debt could potentially lead to difficulties in meeting debt obligations, especially in challenging economic conditions or if the company experiences a downturn in its operations.