Simpson Manufacturing Company Inc (SSD)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,679,750 | 1,669,490 | 1,583,610 | 1,487,410 | 1,413,380 | 1,337,560 | 1,284,640 | 1,231,810 | 1,184,000 | 1,123,000 | 1,086,900 | 1,014,510 | 980,943 | 960,800 | 894,212 | 841,594 | 891,957 | 876,947 | 868,421 | 835,418 |
| Debt-to-capital ratio | 0.20 | 0.24 | 0.26 | 0.22 | 0.23 | 0.33 | 0.34 | 0.27 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.07 | 0.14 | 0.15 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $410,625K ÷ ($410,625K + $1,679,750K)
= 0.20
The debt-to-capital ratio of Simpson Manufacturing Co., Inc. has shown a decreasing trend over the past eight quarters. The ratio has decreased from 0.36 in Q1 2022 to 0.22 in Q4 2023. This indicates that the company has been reducing its reliance on debt financing in relation to its total capital, which could be viewed positively by investors and lenders.
A lower debt-to-capital ratio signifies a lower level of financial risk for the company, as it indicates that a smaller portion of the company's capital structure is funded by debt. This may result in lower interest expenses and increased financial stability for Simpson Manufacturing Co., Inc.
Overall, the decreasing trend in the debt-to-capital ratio suggests that the company has been managing its capital structure effectively by potentially paying down debt, improving profitability, or increasing equity financing. Investors and stakeholders may view this as a favorable indicator of the company's financial health and management's prudent approach to leverage.
Peer comparison
Dec 31, 2023