Simpson Manufacturing Company Inc (SSD)
Debt-to-equity ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 388,125 | 393,750 | 399,375 | 405,000 | 410,625 | 416,250 | 421,875 | 427,500 | 433,100 | 660,164 | 665,449 | 450,000 | 0 | 0 | 0 | 0 | 0 | 75,000 | 150,000 | 150,000 |
| Total stockholders’ equity | US$ in thousands | 1,805,350 | 1,856,970 | 1,764,800 | 1,725,660 | 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 |
| Debt-to-equity ratio | 0.21 | 0.21 | 0.23 | 0.23 | 0.24 | 0.25 | 0.27 | 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 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $388,125K ÷ $1,805,350K
= 0.21
The debt-to-equity ratio of Simpson Manufacturing Company Inc has shown fluctuating trends over the past few years, starting from 0.18 in March 2020 and gradually decreasing to 0.00 at December 31, 2021. This indicates a substantial reduction in the company's reliance on debt financing during this period. However, from March 31, 2022, the ratio started to rise again, reaching 0.52 by June 30, 2022, which suggests a significant increase in debt relative to equity. Subsequently, the ratio has slightly decreased but remained relatively stable around the range of 0.20 to 0.30 from December 31, 2023, to December 31, 2024.
The increase in the debt-to-equity ratio after a period of minimal debt in the company's capital structure could point towards a strategic decision to leverage more debt to finance growth opportunities or capital expenditures. It is essential for stakeholders to monitor this ratio closely to assess the company's risk profile and financial health, particularly in terms of its ability to meet its debt obligations and withstand economic downturns.
Peer comparison
Dec 31, 2024