Twilio Inc (TWLO)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $7,952,970K
= 0.00
The data indicates that Twilio Inc. maintained a debt-to-equity ratio of zero from December 31, 2020, through December 31, 2024. This consistent zero value suggests that the company did not utilize long-term debt or short-term borrowings during this period. In other words, Twilio's capital structure appears to have been entirely equity-financed, without any significant leverage through debt. Such a financing approach can imply a conservative financial policy, minimizing interest obligations and financial risk associated with leverage. However, it may also suggest limited use of debt to fund growth initiatives, which could impact the company's financial flexibility and potential return on equity. Overall, the persistent absence of debt implies that Twilio relies solely on equity financing in its capital structure across these fiscal years.
Peer comparison
Dec 31, 2024