Werner Enterprises Inc (WERN)

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	646,250	687,500	422,500	175,000	225,000
Total stockholders’ equity	US$ in thousands	1,528,340	1,443,640	1,327,550	1,195,040	1,111,010
Debt-to-capital ratio		0.30	0.32	0.24	0.13	0.17

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $646,250K ÷ ($646,250K + $1,528,340K)
= 0.30

The debt-to-capital ratio of Werner Enterprises, Inc. has fluctuated over the past five years. In 2023, the ratio stood at 0.29, indicating that debt represented 29% of the company's total capital. This was a decrease from 2022 when the ratio was 0.32. The ratio has generally trended upwards from 2020 to 2022 before experiencing a slight decrease in 2023.

The increase in the debt-to-capital ratio from 2020 to 2022 may suggest that Werner Enterprises, Inc. has taken on more debt relative to its total capital during this period. However, the decrease in the ratio in 2023 could indicate a potential effort to reduce debt levels or increase capital.

It is important to note that a higher debt-to-capital ratio can indicate higher financial risk, as the company is relying more on debt to finance its operations. Conversely, a lower ratio may indicate a stronger financial position with less reliance on debt.

Overall, the trend in Werner Enterprises, Inc.'s debt-to-capital ratio over the past five years showcases fluctuations that may reflect changes in the company's capital structure and financing decisions. It is essential for investors and analysts to monitor this ratio along with other financial metrics to assess the company's financial health and risk profile accurately.