Quanta Services Inc (PWR)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,272,240 | 5,383,460 | 5,112,300 | 4,344,180 | 4,050,290 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $6,272,240K)
= 0.00
The debt-to-capital ratio of Quanta Services, Inc. has been fluctuating over the past five years. In 2023, the ratio decreased slightly to 0.40 from 0.41 in 2022. This indicates that the company financed 40% of its capital structure through debt in 2023. Comparing this to previous years, we see that the ratio was higher in 2021 and 2022 at 0.42 and 0.41, respectively. In 2020 and 2019, the ratio was lower at 0.21 and 0.25, respectively.
The decreasing trend from 2021 to 2023 may suggest that Quanta Services has been gradually reducing its reliance on debt to fund its operations and growth. However, the ratio is still above the levels seen in 2020 and 2019, indicating that the company still maintains a significant level of debt in its capital structure.
Overall, a debt-to-capital ratio of 0.40 in 2023 implies that Quanta Services relies moderately on debt to finance its operations and investments compared to its equity capital. Further analysis of the company's financial health and other ratios would be necessary to provide a more comprehensive assessment of its leverage position.
Peer comparison
Dec 31, 2023