Tootsie Roll Industries Inc (TR)
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 | 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-equity ratio | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $7,500K ÷ $823,422K
= 0.01
Tootsie Roll Industries, Inc. has consistently maintained a very low debt-to-equity ratio of 0.01 over the five-year period from 2019 to 2023. This indicates that the company relies minimally on debt to finance its operations and growth, preferring to use equity financing instead. A low debt-to-equity ratio is generally viewed positively by investors and creditors as it signifies lower financial risk and a strong financial position. Tootsie Roll's stable debt-to-equity ratio suggests prudent financial management and strategic decision-making in maintaining a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2023