Bio-Rad Laboratories Inc (BIO)

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	1,199,100	1,197,700	10,514	12,258	13,579
Total stockholders’ equity	US$ in thousands	8,741,130	9,615,250	13,685,200	9,889,690	5,756,840
Debt-to-capital ratio		0.12	0.11	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,199,100K ÷ ($1,199,100K + $8,741,130K)
= 0.12

The debt-to-capital ratio of Bio-Rad Laboratories Inc. has shown fluctuation over the past five years. In 2019 and 2020, the company had a debt-to-capital ratio of 0.07, indicating that 7% of its capital structure was funded by debt. However, there was a substantial decrease to 0.00 in 2021, which suggests that the company was effectively debt-free that year. This indicates a strong financial position and lower financial risk as the company relied more on equity to fund its operations.

In the following years, 2022 and 2023, Bio-Rad Laboratories Inc. saw an increase in its debt-to-capital ratio to 0.11 and 0.12, respectively. This suggests that the company started taking on more debt relative to its capital structure, indicating a potential shift towards using debt financing for its operations or investments. While the debt-to-capital ratio is still relatively low compared to some industries, the upward trend indicates a potential increase in financial leverage.

Overall, the trend in Bio-Rad Laboratories Inc.'s debt-to-capital ratio reflects varying levels of reliance on debt financing over the past five years. The recent increase in the ratio may indicate a strategic decision to leverage debt for growth opportunities or other financial considerations. However, it is essential for stakeholders to monitor this ratio closely to assess the company's financial health and risk management strategies.