Oceaneering International Inc (OII)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	482,009	477,058	700,973	702,067	805,251
Total stockholders’ equity	US$ in thousands	714,259	628,020	519,741	504,961	552,094
Debt-to-capital ratio		0.40	0.43	0.57	0.58	0.59

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $482,009K ÷ ($482,009K + $714,259K)
= 0.40

Based on the data provided, Oceaneering International Inc's debt-to-capital ratio has trended downwards steadily over the past five years. As of December 31, 2020, the ratio was 0.59, indicating that 59% of the company's capital was financed through debt. This ratio decreased to 0.58 by December 31, 2021, and further decreased to 0.57 by December 31, 2022. A more significant decline in the ratio was observed by December 31, 2023, when it fell to 0.43. The trend continued downwards with the ratio dropping to 0.40 by December 31, 2024.

The decreasing trend in the debt-to-capital ratio suggests that Oceaneering International Inc has been reducing its reliance on debt to finance its operations and investments relative to its total capital structure over the years. This trend may indicate improved financial stability and reduced financial risk for the company, as lower debt levels can lead to lower interest expenses and debt servicing costs. Overall, the downward trend in the debt-to-capital ratio reflects a positive financial performance and prudent financial management by Oceaneering International Inc.