YETI Holdings Inc (YETI)
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 | 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-equity ratio | 0.11 | 0.14 | 0.18 | 0.38 | 2.31 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $78,645K ÷ $723,610K
= 0.11
Based on the data provided, YETI Holdings Inc's debt-to-equity ratio has shown a consistent decline over the past five years. The ratio decreased from 2.31 in 2019 to 0.11 in 2023. This indicates a significant improvement in the company's financial leverage and solvency position.
A lower debt-to-equity ratio suggests that the company relies less on debt financing and has a stronger equity base to support its operations. This can be seen as a positive sign from an investor's perspective, as lower leverage typically indicates lower financial risk.
YETI Holdings Inc's decreasing trend in debt-to-equity ratio may signify that the company has been reducing its debt levels relative to its equity, which could improve its overall financial health and stability. It also suggests that the company may have better access to equity financing or improved profitability, allowing it to rely less on debt to fund its operations and growth.
Peer comparison
Dec 31, 2023