Silgan Holdings Inc (SLGN)
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 | 2,546,450 | 3,345,380 | 3,772,930 | 3,223,220 | 2,214,610 |
| Total stockholders’ equity | US$ in thousands | 1,889,360 | 1,718,260 | 1,562,700 | 1,252,870 | 1,023,320 |
| Debt-to-equity ratio | 1.35 | 1.95 | 2.41 | 2.57 | 2.16 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,546,450K ÷ $1,889,360K
= 1.35
Silgan Holdings Inc.'s debt-to-equity ratio has shown a decreasing trend over the past five years. The ratio decreased from 2.19 in 2019 to 2.60 in 2020, followed by a further decline to 2.43 in 2021, and then to 1.99 in 2022. However, in 2023, the debt-to-equity ratio increased slightly to 1.81.
A decreasing trend in the debt-to-equity ratio indicates that Silgan Holdings has been relying less on debt financing relative to equity financing in recent years. This can be a positive sign, as lower levels of debt compared to equity may imply reduced financial risk and potentially improved financial stability for the company.
However, it is essential to consider the context of the industry in which Silgan operates and the company's specific financial strategies when interpreting the significance of changes in the debt-to-equity ratio. Further analysis of the company's overall financial health and performance would provide a more comprehensive understanding of its capital structure and financing decisions.
Peer comparison
Dec 31, 2023