Amphastar P (AMPH)

Debt-to-equity ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 613,532 603,174 76,642 78,185 45,923
Total stockholders’ equity US$ in thousands 732,298 639,421 528,658 445,522 402,306
Debt-to-equity ratio 0.84 0.94 0.14 0.18 0.11

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $613,532K ÷ $732,298K
= 0.84

The debt-to-equity ratio of Amphastar P has shown variations over the years as follows: 0.11 as of December 31, 2020, 0.18 as of December 31, 2021, 0.14 as of December 31, 2022, 0.94 as of December 31, 2023, and 0.84 as of December 31, 2024. The ratio indicates the proportion of debt financing relative to equity.

The ratio has been relatively stable in the range of 0.11 to 0.18 up to December 31, 2022, suggesting a conservative financing structure with lower reliance on debt for operations. However, a notable increase is seen by the end of December 31, 2023, where the ratio rises sharply to 0.94, indicating a substantial increase in debt relative to equity. This significant change could raise concerns about the company's financial leverage and ability to meet debt obligations.

By the end of December 31, 2024, the ratio decreases to 0.84, showing some improvement from the previous year but still indicating a higher level of debt compared to equity. Investors and stakeholders may closely monitor this trend to assess the company's financial health, risk management, and potential impact on profitability and solvency.