Twilio Inc (TWLO)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 7,952,970 | 9,732,550 | 10,559,000 | 11,031,500 | 8,452,660 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $7,952,970K)
= 0.00
The analysis of Twilio Inc’s debt-to-capital ratio reveals a consistent pattern across the four-year period from December 31, 2020, through December 31, 2024. In each fiscal year, the debt-to-capital ratio stands at 0.00, indicating that the company has not utilized any debt financing relative to its total capital during this timeframe.
This persistent ratio suggests that Twilio Inc's capital structure is entirely reliant on equity and internally generated funds, with no contribution from external debt sources. The absence of debt implies a conservative financial policy, potentially aimed at maintaining financial flexibility, minimizing interest obligations, and avoiding leverage-related risks.
Overall, the steady zero level of this ratio over multiple years reflects a debt-free capital structure, which may have implications for the company's risk profile, cost of capital, and capacity for future leverage, should it choose to pursue debt financing in the future.
Peer comparison
Dec 31, 2024