Stepan Company (SCL)
Debt-to-equity 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-equity ratio | 0.33 | 0.35 | 0.36 | 0.38 | 0.39 | 0.41 | 0.34 | 0.36 | 0.30 | 0.22 | 0.19 | 0.16 | 0.16 | 0.18 | 0.21 | 0.23 | 0.22 | 0.24 | 0.24 | 0.29 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $401,248K ÷ $1,216,490K
= 0.33
Stepan Co.'s debt-to-equity ratio has been relatively stable over the past eight quarters, ranging between 0.47 and 0.60. The ratio indicates that the company has been maintaining a moderate level of debt compared to equity in its capital structure. A ratio of 0.54 in the most recent quarter suggests that for every dollar of equity, the company has $0.54 in debt.
The slight fluctuations in the ratio over the quarters could be a result of changes in the company's debt levels or equity financing decisions. A ratio above 0.50 may indicate that the company relies more on debt financing than equity to support its operations, which could imply higher financial risk. Conversely, a lower ratio signifies a stronger equity position relative to debt.
Overall, the trend in Stepan Co.'s debt-to-equity ratio indicates a consistent approach to balancing debt and equity in its capital structure, providing insight into the company's financial leverage and risk management strategies.
Peer comparison
Dec 31, 2023