Stepan Company (SCL)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 401,248 | 422,375 | 438,269 | 453,742 | 455,029 | 466,766 | 383,503 | 397,760 | 322,862 | 232,184 | 196,529 | 160,847 | 160,812 | 170,063 | 184,315 | 198,566 | 198,532 | 207,783 | 207,748 | 239,063 |
| Total stockholders’ equity | US$ in thousands | 1,216,490 | 1,202,770 | 1,215,100 | 1,189,910 | 1,166,060 | 1,130,240 | 1,125,710 | 1,116,740 | 1,074,190 | 1,057,300 | 1,048,800 | 1,002,280 | 986,693 | 938,193 | 897,429 | 866,778 | 891,783 | 854,209 | 857,658 | 831,447 |
| Debt-to-capital ratio | 0.25 | 0.26 | 0.27 | 0.28 | 0.28 | 0.29 | 0.25 | 0.26 | 0.23 | 0.18 | 0.16 | 0.14 | 0.14 | 0.15 | 0.17 | 0.19 | 0.18 | 0.20 | 0.19 | 0.22 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $401,248K ÷ ($401,248K + $1,216,490K)
= 0.25
Stepan Co.'s debt-to-capital ratio has shown relatively stable levels over the past eight quarters, ranging from 0.32 to 0.37. The ratio measures the proportion of the company's total debt to its total capital, which includes both debt and equity.
With the ratio fluctuating within this narrow range, it indicates that Stepan Co. has been maintaining a consistent balance between debt and equity in its capital structure. A ratio of around 0.35 suggests that the company relies more on equity financing than debt, as a higher ratio indicates higher financial leverage and potential risk.
Overall, the stability of the debt-to-capital ratio for Stepan Co. implies a consistent approach to managing its capital structure and financial obligations. This steady ratio could indicate that the company has a conservative financial strategy, limiting its reliance on debt to fund its operations and growth.
Peer comparison
Dec 31, 2023