Wabash National Corporation (WNC)

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	396,465	396,300	396,138	395,977	395,818	443,662	454,506	484,354	428,315	419,130	418,900	448,214	447,979	457,222	455,800	500,591	455,386	475,122	489,865	502,757
Total stockholders’ equity	US$ in thousands	549,496	518,687	481,024	424,443	397,613	360,102	338,171	342,253	325,539	386,194	399,980	402,302	404,879	397,365	393,217	393,969	520,988	515,058	501,565	483,606
Debt-to-equity ratio		0.72	0.76	0.82	0.93	1.00	1.23	1.34	1.42	1.32	1.09	1.05	1.11	1.11	1.15	1.16	1.27	0.87	0.92	0.98	1.04

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 been on a declining trend from Q1 2022 to Q4 2023, indicating a positive development in the company's capital structure. The ratio decreased from 1.42 in Q1 2022 to 0.72 in Q4 2023. This suggests that the company has been reducing its reliance on debt financing in comparison to equity financing over the analyzed period.

A lower debt-to-equity ratio is generally seen as a favorable sign as it implies lower financial risk and less financial leverage. It demonstrates that the company has a higher proportion of equity in its capital structure compared to debt, which can provide a cushion in times of financial distress.

Wabash National Corp.'s decreasing debt-to-equity ratio may indicate improved financial health and stability, potentially enhancing its ability to weather economic uncertainties and pursue growth opportunities. However, it's important to consider the reasons behind this trend and assess whether it aligns with the company's strategic objectives and financial goals.