Tidewater Inc (TDW)

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	631,361	169,036	167,885	164,934	279,044
Total stockholders’ equity	US$ in thousands	1,039,240	865,968	701,303	822,115	1,014,800
Debt-to-equity ratio		0.61	0.20	0.24	0.20	0.27

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $631,361K ÷ $1,039,240K
= 0.61

The debt-to-equity ratio measures the proportion of a company's debt to its total equity, indicating the extent to which a company is financed by debt compared to shareholders' equity.

Analyzing Tidewater Inc's debt-to-equity ratio over the past five years reveals a fluctuating trend. In 2023, the ratio increased to 0.61 from 0.20 in 2022, indicating a significant rise in the company's debt relative to equity. This suggests that Tidewater relied more on debt financing in 2023 compared to the previous year.

Looking back further, we observe that the ratio was relatively stable at around 0.20 in 2022 and 2020, signaling a balanced capital structure with a lower reliance on debt. In 2021, there was a slight increase to 0.24, showing a moderate uptick in debt utilization.

However, in 2019, the ratio was higher at 0.27, indicating a higher level of debt compared to equity. This suggests that Tidewater may have been more leveraged in 2019 than in the subsequent years.

Overall, the fluctuation in Tidewater Inc's debt-to-equity ratio over the years reflects varying levels of debt utilization and capital structure management. The significant increase in the ratio in 2023 may require further investigation to understand the reasons behind the shift towards more debt financing.