Olympic Steel Inc (ZEUS)
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 | 190,198 | 165,658 | 327,764 | 160,609 | 192,925 |
| Total stockholders’ equity | US$ in thousands | 555,478 | 515,968 | 424,439 | 424,439 | 308,352 |
| Debt-to-capital ratio | 0.26 | 0.24 | 0.44 | 0.27 | 0.38 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $190,198K ÷ ($190,198K + $555,478K)
= 0.26
The debt-to-capital ratio of Olympic Steel Inc. has shown fluctuation over the past five years. In 2023, the ratio was 0.26, indicating that 26% of the company's capital structure was comprised of debt. This was a slight increase from the previous year's ratio of 0.24.
In 2021, the ratio spiked to 0.44, signifying that 44% of the company's capital was funded through debt, which was a significant increase from the previous year. However, in 2022 and 2023, the ratio improved, suggesting a reduction in the proportion of debt relative to total capital.
Overall, Olympic Steel Inc. has maintained a relatively moderate debt-to-capital ratio over the years, demonstrating a balanced approach in utilizing debt to finance its operations and investments. It is essential for the company to continue monitoring and managing this ratio effectively to ensure its financial stability and leverage position.
Peer comparison
Dec 31, 2023