Simpson Manufacturing Company Inc (SSD)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 388,125 | 410,625 | 433,125 | 0 | 0 |
| Total stockholders’ equity | US$ in thousands | 1,805,350 | 1,679,750 | 1,413,380 | 1,184,000 | 980,943 |
| Debt-to-capital ratio | 0.18 | 0.20 | 0.23 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $388,125K ÷ ($388,125K + $1,805,350K)
= 0.18
The debt-to-capital ratio for Simpson Manufacturing Company Inc has shown a consistent decrease over the years, starting at 0.23 in December 31, 2022, and dropping to 0.18 by December 31, 2024. This trend indicates that the company has been reducing its reliance on debt financing relative to its total capital structure. A lower debt-to-capital ratio suggests a healthier financial position, as it signifies less financial risk and dependence on borrowed funds. However, it is important to assess the reasons behind this decline and evaluate how it may impact the company's overall financial health and growth prospects.
Peer comparison
Dec 31, 2024