Tootsie Roll Industries Inc (TR)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 7,500 | 7,500 | 7,500 | 7,500 | 7,500 |
| Total stockholders’ equity | US$ in thousands | 823,422 | 783,171 | 769,042 | 763,327 | 759,854 |
| Debt-to-capital ratio | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $7,500K ÷ ($7,500K + $823,422K)
= 0.01
Throughout the past five years, Tootsie Roll Industries, Inc. has maintained a remarkably low debt-to-capital ratio of 0.01 consistently. This indicates that the company's level of debt relative to its total capital structure has been very minimal and stable over the years. A low debt-to-capital ratio signifies a lower financial risk for the company, as it suggests that Tootsie Roll relies more on equity financing rather than debt to fund its operations and investments. This conservative approach to capital structure management may imply that the company prioritizes financial stability and liquidity while limiting its exposure to interest rate risk and potential financial distress.
Peer comparison
Dec 31, 2023