Balchem Corporation (BCPC)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 326,146 | 440,569 | 122,281 | 174,086 | 256,396 |
| Total assets | US$ in thousands | 1,597,210 | 1,624,510 | 1,199,320 | 1,165,840 | 1,155,680 |
| Debt-to-assets ratio | 0.20 | 0.27 | 0.10 | 0.15 | 0.22 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $326,146K ÷ $1,597,210K
= 0.20
The debt-to-assets ratio measures the proportion of a company's total assets that are financed by debt. A lower ratio indicates lower financial risk as the company relies less on debt to fund its operations and growth.
Looking at the historical trend of Balchem Corp.'s debt-to-assets ratio from 2019 to 2023, we observe fluctuations in the ratio. In 2019, the ratio was 0.22, indicating that 22% of the company's assets were financed by debt. The ratio decreased to 0.14 in 2020, signaling a reduction in reliance on debt financing. However, in 2021, there was a substantial decrease in the ratio to 0.09, reflecting a significant decline in the proportion of assets financed by debt.
The ratio increased to 0.27 in 2022, suggesting a higher level of debt financing relative to assets compared to the previous year. However, in 2023, the ratio decreased once again to 0.20, indicating a decrease in reliance on debt financing compared to the previous year but still higher than 2021.
Overall, the trend in Balchem Corp.'s debt-to-assets ratio shows that the company has experienced fluctuations in its debt financing strategy over the years. Investors and stakeholders should continue to monitor this ratio to assess the company's financial risk and ability to manage its debt levels effectively.
Peer comparison
Dec 31, 2023