Artivion Inc (AORT)
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 | 305,531 | 306,499 | 307,493 | 290,468 | 214,571 |
| Total stockholders’ equity | US$ in thousands | 281,780 | 284,329 | 300,728 | 328,713 | 285,696 |
| Debt-to-equity ratio | 1.08 | 1.08 | 1.02 | 0.88 | 0.75 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $305,531K ÷ $281,780K
= 1.08
The debt-to-equity ratio of Artivion Inc has been gradually increasing over the past five years. This indicates that the company has been relying more on debt financing relative to equity to fund its operations and growth.
In 2019, the debt-to-equity ratio was 0.78, showing a lower level of debt compared to equity in the capital structure. However, by 2023, the ratio has risen to 1.10, pointing to a higher proportion of debt in relation to equity.
A debt-to-equity ratio above 1.0 typically suggests that the company has more debt than equity, which can indicate a higher financial risk level. Investors and creditors may closely monitor this trend as an increasing ratio may signal potential challenges in servicing the debt obligations and financial stability of the company.
Artivion Inc should consider managing its debt levels effectively to maintain a balanced capital structure and ensure sustainable growth and profitability in the long term.
Peer comparison
Dec 31, 2023