Viad Corp (VVI)

Debt-to-equity 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-equity ratio		8.05	20.77	52.36	2.65	0.65

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $349,800K ÷ $43,433K
= 8.05

The debt-to-equity ratio for Viad Corp. has fluctuated over the past five years. In 2019, the ratio was at a relatively low level of 0.73, indicating a conservative capital structure with a higher proportion of equity compared to debt. However, starting from 2020, the ratio increased significantly, reaching a peak of 3.31 in 2021. This suggests a substantial increase in debt relative to equity in those years.

In 2022 and 2023, the debt-to-equity ratio remained above 2, indicating a higher reliance on debt financing compared to equity. The ratio decreased from 3.31 in 2021 to 3.19 in 2022 and further to 2.57 in 2023, showing a slight improvement in the company's capital structure over the last two years.

Overall, the trend in Viad Corp.'s debt-to-equity ratio reveals a notable shift towards a more leveraged position in recent years, potentially increasing financial risk but also possibly enabling the company to take advantage of growth opportunities through debt financing. Continued monitoring of this ratio is advisable to assess the company's ongoing financial stability and leverage levels.