Impinj Inc (PI)
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 | 281,855 | 280,244 | 278,661 | 54,556 | 50,876 |
| Total stockholders’ equity | US$ in thousands | 34,131 | 15,591 | -11,076 | 109,119 | 125,239 |
| Debt-to-equity ratio | 8.26 | 17.97 | — | 0.50 | 0.41 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $281,855K ÷ $34,131K
= 8.26
The debt-to-equity ratio of Impinj Inc has fluctuated significantly over the past five years. In 2019 and 2020, the company maintained relatively low levels of debt compared to equity, with ratios of 0.41 and 0.50 respectively, indicating a conservative capital structure. However, there was a notable increase in leverage in 2022 and 2023, with the ratio reaching 17.97 and 8.26 respectively.
The substantial increase in the debt-to-equity ratio in 2022 and 2023 suggests that Impinj Inc has taken on a higher level of debt relative to equity, which could indicate a shift towards a more aggressive financing strategy. This increase in leverage may have been driven by the need to fund growth initiatives, acquisitions, or other strategic investments.
Overall, the trend in the debt-to-equity ratio for Impinj Inc highlights the importance of monitoring the company's capital structure and financial leverage, as significant changes in these ratios can signal shifts in the company's financial risk profile and strategic priorities. Investors, creditors, and other stakeholders should closely evaluate the reasons behind the changes in the debt-to-equity ratio to assess the company's financial health and sustainability.
Peer comparison
Dec 31, 2023