Olympic Steel Inc (ZEUS)
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 | 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-equity ratio | 0.34 | 0.32 | 0.77 | 0.38 | 0.63 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $190,198K ÷ $555,478K
= 0.34
The debt-to-equity ratio for Olympic Steel Inc. has shown fluctuating trends over the past five years. In 2023, the ratio stands at 0.34, indicating a moderate level of debt relative to equity. This suggests that the company relies more on equity financing rather than debt to support its operations and growth.
In comparison to the previous year, the ratio has increased slightly from 0.32 in 2022. However, when looking back further, the ratio was significantly higher in 2021 at 0.77, indicating a higher proportion of debt to equity. The company seemed to have reduced its reliance on debt financing in 2023 compared to 2021.
Similarly, in 2020 and 2019, the debt-to-equity ratios were 0.53 and 0.63, respectively. The downward trend from 2019 to 2022 suggests a strategic effort by the company to manage its debt levels gradually over the years.
Overall, a debt-to-equity ratio of 0.34 in 2023 reflects a balanced capital structure for Olympic Steel Inc., where the company has a relatively low level of debt in relation to equity, providing a stable financial position. It indicates prudent financial management and a cautious approach towards debt obligations, which could be viewed positively by investors and creditors.
Peer comparison
Dec 31, 2023