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.