Cactus Inc (WHD)
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 | — | 0 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 865,522 | 571,917 | 468,644 | 352,970 | 327,466 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $865,522K)
= 0.00
The debt-to-capital ratio of Cactus Inc has consistently been at 0.00 for the past five years, indicating that the company has not utilized any debt to finance its operations relative to its total capital structure. This suggests that Cactus Inc relies solely on equity financing, which can be viewed as a positive indicator of financial stability and lower financial risk. However, it is important to consider that a zero debt-to-capital ratio might also imply missed opportunities for leveraging debt to potentially enhance returns on investment. Overall, a consistent zero debt-to-capital ratio for several years points to a largely conservative financial strategy by Cactus Inc.
Peer comparison
Dec 31, 2023