Wabash National Corporation (WNC)
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 | 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-equity ratio | 0.72 | 1.00 | 1.32 | 1.11 | 0.87 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $396,465K ÷ $549,496K
= 0.72
The debt-to-equity ratio of Wabash National Corp. has exhibited fluctuations over the past five years. As of December 31, 2023, the company's debt-to-equity ratio stood at 0.72, indicating that for every dollar of equity, Wabash National had $0.72 of debt. This represents a significant improvement compared to the previous year's ratio of 1.00.
In 2021, the company had a higher debt-to-equity ratio of 1.32, suggesting a higher level of debt compared to equity. However, this ratio decreased to 1.11 in 2020 and further improved to 0.88 in 2019.
Overall, the decreasing trend in the debt-to-equity ratio from 2021 to 2023 suggests that Wabash National Corp. has been gradually reducing its reliance on debt to finance its operations relative to shareholders' equity. This can be viewed positively as lower debt levels typically indicate lower financial risk and better financial health for the company. It is important for investors and stakeholders to monitor this ratio over time to assess the company's leverage and ability to meet its financial obligations.