Viad Corp (VVI)

Debt-to-equity ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	349,800	326,700	320,800	318,100	301,800	322,200	340,800	330,600	328,900	310,500	355,100	329,100	254,000	222,000	398,300	430,100	304,000	297,800	316,600	239,100
Total stockholders’ equity	US$ in thousands	43,433	51,750	16,487	-4,248	14,530	617,162	-7,591	-18,169	6,282	25,608	18,751	56,502	95,955	134,848	153,772	349,295	467,498	465,037	438,909	420,403
Debt-to-equity ratio		8.05	6.31	19.46	—	20.77	0.52	—	—	52.36	12.13	18.94	5.82	2.65	1.65	2.59	1.23	0.65	0.64	0.72	0.57

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 of Viad Corp. has been fluctuating over the past eight quarters. The trend shows an increase in leverage, with the ratio climbing from 3.19 in Q4 2022 to 3.64 in Q1 2023 before peaking at 4.02 in Q1 2022. This indicates that the company is relying more on debt financing compared to equity.

While a higher debt-to-equity ratio may provide opportunities for leveraging investments and potentially increasing returns for shareholders, it also increases financial risk as the company has more debt obligations to fulfill. It is important for Viad Corp. to monitor and manage its debt levels effectively to ensure long-term financial stability and mitigate the risks associated with high leverage.