Shutterstock (SSTK)

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	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	527,094	447,482	468,482	421,925	328,145
Debt-to-equity ratio		0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $527,094K
= 0.00

The debt-to-equity ratio for Shutterstock Inc has shown a decreasing trend over the past five years, reflecting the company's decreasing reliance on debt to finance its operations in relation to its equity. In 2023, the ratio stands at 0.06, indicating that for every dollar of equity in the company, there is six cents of debt. This suggests a conservative capital structure, with a lower level of financial risk compared to previous years.

The significant decrease in the debt-to-equity ratio from 0.11 in 2022 to 0.06 in 2023 highlights the company's efforts to reduce its debt levels or increase its equity base. This decrease may indicate improved financial stability and a stronger ability to weather economic downturns or manage debt repayment obligations.

It is noteworthy that in 2021, 2020, and 2019, the company reported a debt-to-equity ratio of 0.00, implying that there was either no debt or minimal debt in relation to equity during those years. This could suggest that the company was primarily funded by equity or had a strong cash position, which is generally seen as a positive indicator of financial health and liquidity.

In conclusion, the decreasing trend in Shutterstock Inc's debt-to-equity ratio signifies a more conservative financial strategy and lower financial risk profile, which may be viewed positively by investors and creditors. However, it is essential to consider other financial metrics and factors when assessing the overall financial health and performance of the company.