Simpson Manufacturing Company Inc (SSD)
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 | 410,625 | 433,125 | 0 | 0 | 0 |
| Total assets | US$ in thousands | 2,704,720 | 2,503,970 | 1,484,120 | 1,232,570 | 1,095,370 |
| Debt-to-assets ratio | 0.15 | 0.17 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $410,625K ÷ $2,704,720K
= 0.15
The debt-to-assets ratio of Simpson Manufacturing Co., Inc. has shown an increasing trend over the years based on the data provided. In 2023, the ratio stands at 0.18, indicating that 18% of the company's total assets are financed by debt. This represents a decrease from the previous year's ratio of 0.23, suggesting that the company has reduced its reliance on debt to fund its operations.
The sudden increase in the debt-to-assets ratio from 0.00 in 2021 and the subsequent decrease in 2022 could indicate changes in the company's financing strategy or significant investment decisions. Further investigation into the nature of the debt and the assets being financed is necessary to fully understand the implications of these fluctuations.
It is important to note that while having some level of debt can provide a company with financial leverage and tax advantages, excessively high debt levels can increase financial risk and interest expenses. Therefore, monitoring the debt-to-assets ratio over time and comparing it to industry benchmarks can help assess Simpson Manufacturing Co., Inc.'s financial health and risk profile.
Peer comparison
Dec 31, 2023