Bio-Rad Laboratories Inc (BIO)

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 1,199,100 1,197,700 10,514 12,258 13,579
Total assets US$ in thousands 12,299,100 13,501,700 17,799,400 12,972,600 8,008,860
Debt-to-assets ratio 0.10 0.09 0.00 0.00 0.00

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,199,100K ÷ $12,299,100K
= 0.10

The debt-to-assets ratio measures the proportion of a company's assets financed by debt. Bio-Rad Laboratories Inc. has shown a reasonably consistent trend in its debt-to-assets ratio over the past five years. In 2019, the ratio stood at 0.05, indicating that 5% of the company's assets were financed by debt. This ratio increased to 0.10 in 2020, signifying a rise in debt usage to finance assets to 10%. However, in 2021 and 2022, the company reported a debt-to-assets ratio of 0.00, suggesting that it had no debt financing its assets during those years.

It is important to note that a debt-to-assets ratio of 0.00 does not necessarily mean that the company has no debt obligations; rather, it could indicate the absence of long-term debt or a very conservative debt profile. The 2023 ratio of 0.09 represents an increase from the previous year but is still relatively low compared to 2020.

Overall, Bio-Rad Laboratories Inc. has generally maintained a conservative approach to debt financing, with minimal reliance on debt to fund its operations and investments in recent years.