PBF Energy Inc (PBF)

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	1,245,900	1,434,900	4,295,800	4,653,600	2,064,900
Total stockholders’ equity	US$ in thousands	6,488,300	4,929,200	1,926,200	1,642,800	3,039,600
Debt-to-equity ratio		0.19	0.29	2.23	2.83	0.68

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,245,900K ÷ $6,488,300K
= 0.19

From the data provided, we observe that PBF Energy Inc's debt-to-equity ratio has fluctuated over the past five years. The ratio decreased significantly from 2.89 in 2020 to 0.69 in 2019, indicating a reduction in the company's debt relative to its equity. However, there was a notable increase to 2.27 in 2021, followed by a decrease to 0.41 in 2022, and a further decrease to 0.20 in 2023.

A lower debt-to-equity ratio generally signifies a lower level of financial risk and a stronger financial position. This trend suggests that PBF Energy Inc has been working towards reducing its reliance on debt financing in recent years, which could be a positive sign for the company's financial stability and ability to weather economic downturns.

It is important to note that while a low debt-to-equity ratio is generally favorable, an extremely low ratio could indicate underutilization of leverage, potentially limiting the company's ability to take advantage of growth opportunities. Overall, PBF Energy Inc's trend of decreasing debt-to-equity ratio reflects a strategic approach towards maintaining a balanced capital structure.