Tempur Sealy International Inc (TPX)
Debt-to-equity ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1,502,600 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 333,400 | 223,700 | 147,500 | 43,600 | -12,300 | -143,300 | -180,900 | -91,300 | 285,800 | 371,000 | 410,100 | 327,200 | 503,600 | 456,200 | 249,700 | 208,400 | 359,500 | 336,500 | 305,900 | 253,500 |
| Debt-to-equity 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 | 4.18 | 0.00 | 0.00 | 0.00 |
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 significant fluctuations over the past four quarters. In Q1 2023, the ratio was at a high of 81.93, indicating that the company relied heavily on debt to finance its operations compared to equity. This high ratio may raise concerns about the company's financial health and ability to manage its debt levels.
In contrast, the ratio decreased to 20.14 in Q2 2023 and further decreased to 12.18 in Q3 2023. These reductions suggest that the company may have taken steps to reduce its debt levels or increase its equity base during these periods. Lower debt-to-equity ratios generally indicate a lower financial risk for the company as it is less leveraged.
The most recent data for Q4 2023 shows the ratio at 7.95, which is the lowest among the reported quarters. This indicates a more conservative capital structure with a lower reliance on debt, which can be seen as a positive sign in terms of financial stability and risk management.
Overall, the fluctuation in Tempur Sealy International Inc's debt-to-equity ratio over the past year reflects changes in the company's capital structure and financial leverage. It will be important to monitor future trends in this ratio to assess the company's ability to manage its debt levels effectively and sustain its financial health.
Peer comparison
Dec 31, 2023