TKO Group Holdings, Inc. (TKO)
Debt-to-capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,091,020 | 4,044,560 | 3,991,620 | 4,034,780 | 4,108,980 | 4,164,900 | 586,924 | 561,234 | 568,916 | 471,236 | 440,832 | 401,444 | 374,660 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $4,091,020K)
= 0.00
Based on the provided data, the debt-to-capital ratio of TKO Group Holdings, Inc. has consistently remained at 0.00 from December 31, 2021, until December 31, 2024. This indicates that the company has not utilized any debt in its capital structure during this period. A debt-to-capital ratio of 0.00 signifies that the company's capital is entirely funded by equity rather than debt.
While a lower debt-to-capital ratio generally suggests lower financial risk and greater financial stability due to the absence of debt obligations, it is also essential to consider the potential implications of not leveraging debt for capital funding. This could include limitations on growth opportunities, tax advantages associated with interest payments, and the potential benefits of leveraging debt to enhance returns for shareholders.
In the case of TKO Group Holdings, Inc., maintaining a 0.00 debt-to-capital ratio could reflect a conservative financial strategy focused on operating without the burden of debt obligations, although it may limit the company's ability to take advantage of leveraging opportunities in the future. Investors and stakeholders may view this consistent ratio as a sign of financial strength and stability, but it is crucial to assess the long-term implications of a capital structure primarily reliant on equity financing.
Peer comparison
Dec 31, 2024