Olympic Steel Inc (ZEUS)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 190,198 | 165,658 | 327,764 | 160,609 | 192,925 |
| Total assets | US$ in thousands | 984,835 | 891,627 | 1,023,570 | 1,023,570 | 649,555 |
| Debt-to-assets ratio | 0.19 | 0.19 | 0.32 | 0.16 | 0.30 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $190,198K ÷ $984,835K
= 0.19
The debt-to-assets ratio for Olympic Steel Inc. has shown fluctuating trends over the past five years. In 2023 and 2022, the ratio remained relatively steady at 0.19, indicating that the company financed 19% of its total assets through debt both years. This suggests a conservative approach to leverage.
However, a notable increase in the ratio was observed in 2021, reaching 0.32, which implies that 32% of the company's total assets were financed by debt. This elevated ratio could indicate a higher level of financial risk or potentially increased borrowing to support business operations or investments.
In 2020, the debt-to-assets ratio decreased to 0.25, suggesting a reduction in the proportion of debt used to finance assets compared to the previous year. This decrease may indicate improved financial stability or a shift towards alternative funding sources.
In 2019, the ratio was at 0.30, signifying that 30% of Olympic Steel's total assets were funded by debt. This ratio reflects a moderate level of leverage, balancing the benefits of debt financing with the associated risks.
Overall, Olympic Steel Inc.'s debt-to-assets ratio has shown varying levels over the past five years, highlighting the company's financing strategies and the changes in its capital structure. It is important for stakeholders to monitor this ratio to assess the company's financial health and its ability to manage debt obligations effectively.
Peer comparison
Dec 31, 2023