Rogers Corporation (ROG)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 30,000 | 215,000 | 190,000 | 25,000 | 123,000 |
| Total assets | US$ in thousands | 1,517,200 | 1,646,200 | 1,598,570 | 1,264,000 | 1,273,180 |
| Debt-to-assets ratio | 0.02 | 0.13 | 0.12 | 0.02 | 0.10 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $30,000K ÷ $1,517,200K
= 0.02
The debt-to-assets ratio measures the proportion of a company's assets financed by debt. A lower ratio indicates lower financial risk as it suggests a smaller portion of assets is funded by debt. Looking at the trend for Rogers Corp. over the past five years, the ratio fluctuated between 0.02 and 0.13.
In 2023, the ratio significantly decreased to 0.02 from 0.13 in 2022, reflecting a more conservative debt management approach or potentially a reduction in debt levels relative to total assets. This indicates a lower reliance on debt financing for its operations, which could imply stronger financial stability and lower risk.
In 2021 and 2019, the company also maintained a relatively low debt-to-assets ratio, at 0.12 and 0.10 respectively. However, in 2020, the ratio dropped to 0.02, similarly to 2023, suggesting a proactive debt management strategy.
Overall, the downward trend in the debt-to-assets ratio for Rogers Corp. in recent years implies a more balanced capital structure and reduced financial leverage, which may be viewed positively by investors and creditors due to lower default risk. Further analysis of the company's overall financial health and its ability to generate returns on assets would provide a more comprehensive assessment of its financial performance.
Peer comparison
Dec 31, 2023