Amphastar P (AMPH)

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	603,174	76,642	78,185	45,923	46,324
Total stockholders’ equity	US$ in thousands	639,421	528,658	445,522	402,306	381,366
Debt-to-capital ratio		0.49	0.13	0.15	0.10	0.11

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $603,174K ÷ ($603,174K + $639,421K)
= 0.49

The debt-to-capital ratio for Amphastar Pharmaceuticals Inc has shown an increasing trend over the past five years. In 2023, the ratio stands at 0.48, which indicates that 48% of the company's capital is funded by debt. This represents a significant increase from the ratio of 0.13 in 2022, indicating a higher reliance on debt financing in the most recent year.

The rising debt-to-capital ratio suggests that the company has been taking on more debt relative to its total capital structure over the years. While debt can be a cheaper source of financing compared to equity, it also brings along risks such as increased financial leverage and interest payments.

It is important for investors and creditors to closely monitor this ratio as a high debt-to-capital ratio can indicate potential financial distress or constraints on the company's ability to generate profits and meet its debt obligations in the future. It would be prudent for stakeholders to assess the reasons behind the increasing trend in the debt-to-capital ratio and evaluate the company's overall financial health and debt management strategy.