Ziff Davis Inc (ZD)
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 | 1,001,310 | 999,053 | 1,036,020 | 1,182,220 | 1,062,930 |
| Total stockholders’ equity | US$ in thousands | 1,893,000 | 1,892,610 | 1,967,730 | 1,211,020 | 1,311,190 |
| Debt-to-capital ratio | 0.35 | 0.35 | 0.34 | 0.49 | 0.45 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,001,310K ÷ ($1,001,310K + $1,893,000K)
= 0.35
The debt-to-capital ratio of Ziff Davis Inc has shown some fluctuation over the past five years. In 2023 and 2022, the ratio remained consistent at 0.35, indicating that 35% of the company's capital structure was financed by debt. This suggests a stable debt level relative to the total capital employed by the company during these years.
However, in 2021, the debt-to-capital ratio increased slightly to 0.36, showing a small uptick in the proportion of debt financing in relation to the total capital. This could be an indication of either increased borrowing or decreased capital, which may require further investigation to understand the underlying reasons.
The most notable changes in the debt-to-capital ratio occurred in 2020 and 2019. In 2020, the ratio jumped to 0.57, signaling a significant increase in the proportion of debt relative to the total capital structure. This may imply a higher level of leverage or borrowing compared to the previous years, potentially raising concerns about the company's financial stability and liquidity.
In 2019, the debt-to-capital ratio was 0.52, indicating a relatively high level of debt in the capital structure compared to the more recent years. Although not as drastic as 2020, this ratio still suggests a significant reliance on debt financing during that year.
Overall, the trend in Ziff Davis Inc's debt-to-capital ratio highlights some variability in the company's capital structure over the past five years, with fluctuations in the proportion of debt relative to the total capital employed. Analysts and investors may want to further investigate the reasons behind these changes and assess the implications for the company's financial health and risk profile.