Insteel Industries(Iiin) Financials: Debt To Equity Compared To Industry Average, Plus Other Key Ratios

Solvency Trend (Last 5 Years)

Solvency - debt to equity

This chart shows the historical trend of debt to equity for IIIN compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Debt to Equity

Definition: Debt to equity shows how much debt the company uses compared to the amount invested by its owners. It’s a bit like comparing your mortgage to your house down payment. Higher ratios suggest the business is comfortable borrowing to grow — which can boost returns in good times, but adds risk if conditions worsen. Lower ratios signal a more conservative, steady approach.

Interpretation:
• In '2021', IIIN's debt to equity was 0.01, showing the balance between debt financing and shareholders' equity. Industry average for Steel/Iron Ore in '2021' stood at 0.78.
• In '2022', IIIN's debt to equity was 0.00, showing the balance between debt financing and shareholders' equity. The decrease since '2021' reflects improving financial health. Industry average for Steel/Iron Ore in '2022' stood at 0.47. Industry average declined by 0.31 from previous year.
• In '2023', IIIN's debt to equity was 0.01, showing the balance between debt financing and shareholders' equity. The increase compared to '2022' may signal growing financial pressure. Industry average for Steel/Iron Ore in '2023' stood at 0.36. Industry average declined by 0.11 from previous year.
• In '2024', IIIN's debt to equity was 0.00, showing the balance between debt financing and shareholders' equity. The decrease since '2023' reflects improving financial health. Industry average for Steel/Iron Ore in '2024' stood at 0.20. Industry average declined by 0.16 from previous year.
Overall, IIIN's debt to equity has remained generally stable over the past 4 years.

Formula: Debt to Equity = Total Debt / Shareholders' Equity

Good Range: Below 1.0 is conservative; 1-2 is common depending on industry.