Tractor Supply Company (TSCO)
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 | 1,728,960 | 1,164,060 | 986,382 | 984,324 | 366,480 |
| Total stockholders’ equity | US$ in thousands | 2,149,760 | 2,042,420 | 2,002,660 | 1,923,840 | 1,567,120 |
| Debt-to-capital ratio | 0.45 | 0.36 | 0.33 | 0.34 | 0.19 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,728,960K ÷ ($1,728,960K + $2,149,760K)
= 0.45
The debt-to-capital ratio of Tractor Supply Company has shown an increasing trend over the past five years, reflecting the company's growing reliance on debt to finance its operations and investments. The ratio has increased from 0.19 in 2019 to 0.45 in 2023, indicating that debt financing represents a significant portion of the company's capital structure. This trend suggests that Tractor Supply Company may have taken on more debt relative to its total capital, which can potentially increase financial risk and interest expenses. It is important for investors and stakeholders to monitor this ratio closely to ensure the company's debt levels remain sustainable and in line with its overall financial strategy.
Peer comparison
Dec 31, 2023