Balchem Corporation (BCPC)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 326,146 | 395,926 | 420,908 | 460,660 | 440,569 | 477,442 | 448,853 | 143,674 | 122,281 | 122,080 | 136,265 | 165,914 | 174,086 | 203,373 | 227,508 | 262,247 | 256,396 | 227,169 | 237,008 | 147,699 |
| Total stockholders’ equity | US$ in thousands | 1,053,980 | 1,025,270 | 1,006,900 | 973,416 | 938,284 | 895,922 | 901,370 | 873,682 | 877,015 | 889,078 | 869,642 | 849,492 | 828,233 | 819,443 | 792,523 | 766,271 | 743,667 | 733,586 | 732,345 | 710,509 |
| Debt-to-capital ratio | 0.24 | 0.28 | 0.29 | 0.32 | 0.32 | 0.35 | 0.33 | 0.14 | 0.12 | 0.12 | 0.14 | 0.16 | 0.17 | 0.20 | 0.22 | 0.25 | 0.26 | 0.24 | 0.24 | 0.17 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $326,146K ÷ ($326,146K + $1,053,980K)
= 0.24
The debt-to-capital ratio of Balchem Corp. has shown a varying trend over the past eight quarters. The ratio decreased from 0.34 in Q3 2022 to 0.13 in Q1 2022, indicating a significant reduction in debt relative to total capital during that period. However, the ratio started to increase consistently from Q1 2023 (0.31) to Q4 2023 (0.23), suggesting an increasing proportion of debt in the company's capital structure.
While a lower debt-to-capital ratio is generally seen as favorable as it indicates lower financial risk and greater financial flexibility, an increasing trend in the ratio over time could potentially raise concerns about the company's leverage levels and ability to meet its debt obligations. It is important for investors and analysts to closely monitor the trend and absolute levels of the debt-to-capital ratio to assess Balchem Corp.'s financial health and risk profile.
Peer comparison
Dec 31, 2023