Tractor Supply Company (TSCO)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,728,960 | 1,164,060 | 986,382 | 984,324 | 366,480 |
| Total assets | US$ in thousands | 9,188,150 | 8,489,990 | 7,767,470 | 7,049,120 | 5,289,270 |
| Debt-to-assets ratio | 0.19 | 0.14 | 0.13 | 0.14 | 0.07 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,728,960K ÷ $9,188,150K
= 0.19
Tractor Supply Company's debt-to-assets ratio has exhibited an increasing trend over the past five years. The ratio has risen from 0.07 in 2019 to 0.19 in 2023. This indicates that the company has been using a greater proportion of debt to finance its assets compared to its equity.
In 2023, the debt-to-assets ratio stands at 0.19, implying that approximately 19% of the company's total assets are financed through debt. Comparing this ratio to previous years, it is evident that the company's reliance on debt has increased significantly, which may suggest a shift in the company's financial strategy towards utilizing more debt financing.
It is important for investors and stakeholders to closely monitor this trend, as a higher debt-to-assets ratio can indicate increased financial risk and potential issues with debt repayment in the future. Additionally, the company's ability to generate sufficient cash flows to service its debt obligations should be evaluated to assess the sustainability of its current debt levels.
Peer comparison
Dec 31, 2023