Nexstar Broadcasting Group Inc (NXST)
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 | 6,713,000 | 6,742,000 | 6,771,000 | 6,799,000 | 6,827,000 | 7,052,900 | 7,109,700 | 7,205,000 | 7,367,900 | 7,505,650 | 7,586,320 | 7,567,300 | 7,646,570 | 7,859,620 | 7,977,580 | 7,990,640 | 8,383,280 | 8,393,170 | 3,689,780 | 3,797,190 |
| Total stockholders’ equity | US$ in thousands | 2,299,000 | 2,332,000 | 2,543,000 | 2,624,000 | 2,741,000 | 2,926,100 | 2,869,700 | 2,915,700 | 2,850,400 | 2,618,740 | 2,610,170 | 2,574,200 | 2,518,390 | 2,234,630 | 2,180,320 | 2,093,150 | 2,031,500 | 1,928,720 | 1,943,780 | 1,887,300 |
| Debt-to-equity ratio | 2.92 | 2.89 | 2.66 | 2.59 | 2.49 | 2.41 | 2.48 | 2.47 | 2.58 | 2.87 | 2.91 | 2.94 | 3.04 | 3.52 | 3.66 | 3.82 | 4.13 | 4.35 | 1.90 | 2.01 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,713,000K ÷ $2,299,000K
= 2.92
The debt-to-equity ratio of Nexstar Media Group Inc has been increasing gradually over the past eight quarters, indicating a rising level of debt relative to equity in the company's capital structure. In Q4 2023, the ratio stood at 2.97, the highest among the observed periods. This signifies that for every dollar of equity, the company had approximately $2.97 of debt in the same period.
The trend suggests that Nexstar Media Group Inc has been relying more on debt to finance its operations and growth initiatives compared to equity financing. While a higher debt-to-equity ratio can potentially amplify returns on equity, it also exposes the company to greater financial risk, especially in periods of economic downturn or rising interest rates.
It would be essential for investors and stakeholders to monitor this ratio closely, as a significant increase in leverage could potentially impact the company's financial stability and creditworthiness. Additionally, management's ability to effectively manage and service the increasing debt load would be crucial for the company's long-term sustainability and profitability.
Peer comparison
Dec 31, 2023