Viad Corp (VVI)

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	349,800	301,800	328,900	254,000	304,000
Total stockholders’ equity	US$ in thousands	43,433	14,530	6,282	95,955	467,498
Debt-to-capital ratio		0.89	0.95	0.98	0.73	0.39

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $349,800K ÷ ($349,800K + $43,433K)
= 0.89

The debt-to-capital ratio of Viad Corp has been fluctuating over the past five years, ranging from 0.42 in 2019 to 0.77 in 2021. A higher debt-to-capital ratio indicates that a larger portion of the company's capital structure is financed through debt rather than equity.

In general, a higher debt-to-capital ratio may suggest higher financial risk as the company has more debt obligations to meet. Conversely, a lower ratio indicates a stronger financial position with a lower reliance on debt financing.

The upward trend from 2020 to 2021 indicates that Viad Corp may have increased its debt relative to its total capital during this period. However, the slight decrease in the ratio in 2023 suggests a potential improvement in the company's debt management.

It is essential to consider industry norms and compare Viad Corp's debt-to-capital ratio with its peers to gain a more comprehensive understanding of its financial leverage and risk profile.