Balchem Corporation (BCPC)
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 | 326,146 | 440,569 | 122,281 | 174,086 | 256,396 |
| Total stockholders’ equity | US$ in thousands | 1,053,980 | 938,284 | 877,015 | 828,233 | 743,667 |
| Debt-to-equity ratio | 0.31 | 0.47 | 0.14 | 0.21 | 0.34 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $326,146K ÷ $1,053,980K
= 0.31
The debt-to-equity ratio of Balchem Corp. has fluctuated over the past five years. In 2023, the ratio decreased to 0.30 from 0.47 in 2022, indicating a lower level of financial leverage. This suggests that the company relied less on debt financing and had a higher proportion of equity in its capital structure relative to the previous year.
Comparing to 2021, the debt-to-equity ratio in 2023 was higher, showing an increase in leverage. However, the ratio was still relatively low at 0.30, indicating a conservative capital structure with a greater emphasis on equity financing.
In 2020, the ratio was 0.20, reflecting a moderate level of leverage. This suggests that the company used a balanced mix of debt and equity to fund its operations and investments.
In 2019, the debt-to-equity ratio was 0.33, indicating a slightly higher level of leverage compared to 2023. This suggests that the company may have increased its debt levels relative to equity, potentially to support growth initiatives or other strategic objectives.
Overall, the trend in Balchem Corp.'s debt-to-equity ratio shows fluctuations over the past five years, with varying levels of leverage. The recent decrease in the ratio in 2023 suggests a more conservative approach to financing, possibly aimed at reducing financial risk and strengthening the company's financial position.
Peer comparison
Dec 31, 2023