Simpson Manufacturing Company Inc (SSD)
Debt-to-assets 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 | 410,625 | 539,073 | 544,309 | 427,500 | 433,100 | 660,164 | 665,449 | 450,000 | 0 | 0 | 0 | 0 | 0 | 75,000 | 150,000 | 150,000 | 0 | 0 | 0 | 0 |
| Total assets | US$ in thousands | 2,704,720 | 2,815,490 | 2,719,350 | 2,555,630 | 2,503,970 | 2,504,260 | 2,485,470 | 2,280,350 | 1,484,120 | 1,422,070 | 1,373,970 | 1,294,730 | 1,232,570 | 1,277,860 | 1,284,500 | 1,198,250 | 1,095,370 | 1,086,310 | 1,069,920 | 1,030,350 |
| Debt-to-assets ratio | 0.15 | 0.19 | 0.20 | 0.17 | 0.17 | 0.26 | 0.27 | 0.20 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.06 | 0.12 | 0.13 | 0.00 | 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 been fluctuating over the past eight quarters, indicating varying levels of leverage and financial risk. The ratio has shown a general increasing trend from Q1 2022 to Q4 2023, with values ranging from 0.18 to 0.30.
A lower debt-to-assets ratio typically suggests a lower financial risk, as it indicates that the company relies less on debt to finance its operations and acquisitions. On the other hand, a higher ratio may imply that a greater portion of the company's assets is financed through debt, which could potentially lead to higher interest expenses and increased risk in case of economic downturns.
The trend of increasing debt-to-assets ratio observed in Simpson Manufacturing Co., Inc. over the past year and a half may indicate a growing reliance on debt financing, which could be a strategic decision to fund expansion or growth opportunities. However, it is essential for the company to carefully manage its debt levels to ensure sustainability and to avoid potential financial distress.
Overall, the analysis of Simpson Manufacturing Co., Inc.'s debt-to-assets ratio highlights the importance of monitoring the company's leverage levels and assessing the associated risks to make informed investment decisions.
Peer comparison
Dec 31, 2023