Benchmark Electronics Inc (BHE)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,079,080	1,026,420	973,802	989,588	1,014,830
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,079,080K)
= 0.00

The debt-to-capital ratio for Benchmark Electronics Inc. has exhibited some fluctuations over the past five years. In 2023, the ratio stands at 0.23, slightly lower compared to the prior year's 0.24. This indicates that debt accounts for approximately 23% of the company's total capital structure in 2023.

Looking back to 2021 and 2020, the company experienced a notable increase in its debt-to-capital ratio, rising from 0.12 to 0.24, before stabilizing in 2020. However, even with the fluctuations observed, the debt levels have generally been relatively moderate, ranging between 0.12 and 0.24 over the period analyzed.

The decreasing trend in the debt-to-capital ratio from 2021 to 2023 suggests that Benchmark Electronics Inc. may have been effectively managing its debt levels or shifting towards alternative forms of financing. A lower debt-to-capital ratio indicates less reliance on debt to finance the company's operations and growth, which can be perceived as positive for the company's financial health and risk management.

It is important to note that assessing the debt-to-capital ratio in conjunction with other financial metrics and industry benchmarks would provide a more comprehensive insight into Benchmark Electronics Inc.'s overall financial position and leverage profile.