Wabash National Corporation (WNC)
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 | 396,465 | 395,818 | 428,315 | 447,979 | 455,386 |
| Total stockholders’ equity | US$ in thousands | 549,496 | 397,613 | 325,539 | 404,879 | 520,988 |
| Debt-to-capital ratio | 0.42 | 0.50 | 0.57 | 0.53 | 0.47 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $396,465K ÷ ($396,465K + $549,496K)
= 0.42
The debt-to-capital ratio of Wabash National Corp. has been on a fluctuating trend over the past five years. The ratio decreased from 0.57 in 2021 to 0.42 in 2023, indicating a decrease in the proportion of debt in the company's capital structure relative to total capital. This suggests that the company may have reduced its reliance on debt financing or increased its equity capital during this period.
However, it is worth noting that the ratio increased in 2022 to 0.50 before declining again in 2023. This fluctuation may indicate some variability in the company's capital structure and financial leverage strategies. Overall, a decreasing trend in the debt-to-capital ratio can be viewed positively as it implies a lower financial risk for the company, as it is less reliant on debt to fund its operations and investments.
Further analysis of the company's financial statements and overall financial health would be necessary to understand the specific factors driving these changes in the debt-to-capital ratio and assess the company's financial stability and risk management practices effectively.