Tempur Sealy International Inc (TPX)
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 | — | — | — | — | 1,502,600 |
| Total stockholders’ equity | US$ in thousands | 333,400 | -12,300 | 285,800 | 503,600 | 359,500 |
| Debt-to-equity ratio | 0.00 | — | 0.00 | 0.00 | 4.18 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $333,400K
= 0.00
The debt-to-equity ratio of Tempur Sealy International Inc has shown variability over the past five years. In 2019, the ratio stood at 4.28, indicating that the company had a moderate level of debt relative to its equity. This ratio increased to 2.71 in 2020, suggesting a reduction in debt compared to equity. It then increased significantly to 8.16 by the end of 2021, indicating a notable rise in debt relative to equity. The latest available data for December 31, 2023, shows the debt-to-equity ratio at 7.95, indicating a sizable amount of debt compared to equity.
Overall, the trend in the debt-to-equity ratio for Tempur Sealy International Inc shows fluctuation, with a notable increase from 2020 to 2021 followed by a slight decrease by 2023. The current ratio of 7.95 raises concerns about the company's leverage and its ability to service its debt obligations effectively. Monitoring this ratio over time will be crucial for evaluating the company's capital structure and financial risk.
Peer comparison
Dec 31, 2023