Olympic Steel Inc (ZEUS)

Debt-to-equity ratio

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Long-term debt US$ in thousands 190,198 196,527 238,240 258,765 165,658 244,200 287,880 311,185 327,764 297,880 268,975 191,903 160,609 171,299 196,946 209,052 192,925 223,004 264,649 313,269
Total stockholders’ equity US$ in thousands 555,478 549,321 538,463 524,551 515,968 512,655 499,559 462,786 424,439 512,655 353,820 323,775 424,439 298,835 299,938 306,392 308,352 308,648 308,463 309,200
Debt-to-equity ratio 0.34 0.36 0.44 0.49 0.32 0.48 0.58 0.67 0.77 0.58 0.76 0.59 0.38 0.57 0.66 0.68 0.63 0.72 0.86 1.01

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 fluctuation over the past eight quarters. In Q4 2023, the ratio stood at 0.34, indicating that the company had $0.34 in debt for every $1 of equity. This ratio decreased from the previous quarter, suggesting a lower level of debt relative to equity.

Looking back, the trend in the debt-to-equity ratio has been somewhat volatile, with fluctuations between 0.32 and 0.67 over the past two years. The ratio reached its lowest point in Q4 2022 at 0.32, indicating a relatively lower level of debt compared to equity. However, there was a notable increase in the ratio in Q2 2022, reaching 0.58, and again in Q1 2022, reaching 0.67, signaling higher financial leverage during those periods.

Overall, monitoring the debt-to-equity ratio can help assess Olympic Steel Inc.'s capital structure and financial risk. A lower ratio typically indicates less reliance on debt financing, while a higher ratio suggests higher financial leverage and potential risk. The company's management may need to closely evaluate and manage its debt levels to maintain a healthy balance between debt and equity in order to support sustainable growth and financial stability.


Peer comparison

Dec 31, 2023

Company name
Symbol
Debt-to-equity ratio
Olympic Steel Inc
ZEUS
0.34
Reliance Steel & Aluminum Co
RS
0.15