YETI Holdings Inc (YETI)
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 | 78,645 | 71,741 | 95,741 | 111,017 | 281,715 |
| Total stockholders’ equity | US$ in thousands | 723,610 | 526,477 | 517,823 | 288,418 | 122,005 |
| Debt-to-capital ratio | 0.10 | 0.12 | 0.16 | 0.28 | 0.70 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $78,645K ÷ ($78,645K + $723,610K)
= 0.10
The debt-to-capital ratio of YETI Holdings Inc has shown a decreasing trend over the past five years, indicating a positive shift towards lower reliance on debt financing and a greater proportion of equity in the company's capital structure. In 2019, the ratio was relatively high at 0.70, suggesting a significant portion of the company's capital was funded through debt. However, since then, there has been a consistent decline in the ratio, reaching 0.10 by the end of 2023.
This improvement in the debt-to-capital ratio reflects a reduction in the company's debt relative to its total capital, which could lower financial risk and enhance financial stability. A lower ratio signifies that the company has a stronger capacity to meet its financial obligations and may be perceived more favorably by investors and creditors.
Overall, the decreasing trend in YETI Holdings Inc's debt-to-capital ratio over the past five years indicates a positive financial trend towards a healthier capital structure with a reduced dependency on debt financing.
Peer comparison
Dec 31, 2023