Simpson Manufacturing Company Inc (SSD)
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 | 410,625 | 433,125 | 0 | 0 | 0 |
| Total stockholders’ equity | US$ in thousands | 1,679,750 | 1,413,380 | 1,184,000 | 980,943 | 891,957 |
| Debt-to-equity ratio | 0.24 | 0.31 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $410,625K ÷ $1,679,750K
= 0.24
The debt-to-equity ratio of Simpson Manufacturing Co., Inc. has shown variability over the past five years. As of December 31, 2023, the ratio stands at 0.29, indicating that the company's reliance on debt to finance its operations has decreased compared to the previous year. This suggests a favorable shift towards a more balanced capital structure.
In 2022, the ratio was 0.41, reflecting a higher level of debt relative to equity compared to the current year. It is worth noting that in 2021, 2020, and 2019, the debt-to-equity ratio was recorded as 0.00, signaling that the company had either minimal or no debt during those years.
The decline in the debt-to-equity ratio from 2022 to 2023 may indicate that Simpson Manufacturing Co., Inc. has been paying down its debt or increasing equity financing, which could strengthen its financial position and reduce the associated financial risks. Overall, the decreasing trend in the debt-to-equity ratio demonstrates a potentially improved financial health and stability for the company.
Peer comparison
Dec 31, 2023