Simpson Manufacturing Company Inc (SSD)
Debt-to-equity 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-equity ratio | 0.24 | 0.32 | 0.34 | 0.29 | 0.31 | 0.49 | 0.52 | 0.37 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.08 | 0.17 | 0.18 | 0.00 | 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 been showing a declining trend over the past eight quarters, indicating a reduction in the company's reliance on debt to finance its operations relative to shareholders' equity. The ratio decreased from 0.56 in Q1 2022 to 0.29 in Q4 2023, suggesting a more conservative capital structure.
A lower debt-to-equity ratio signifies that the company has a stronger equity position compared to its debt, which can be viewed positively by investors and creditors as it indicates lower financial risk. Simpson Manufacturing Co., Inc. appears to have been effectively managing its debt levels and optimizing its capital structure during the period under review.
However, it is essential to consider the industry benchmarks and specific business circumstances when evaluating the debt-to-equity ratio in isolation. It can provide insights into the company's financial health and risk profile, but other factors should also be taken into account for a comprehensive assessment of the firm's overall financial position.
Peer comparison
Dec 31, 2023