Boston Scientific Corp (BSX)
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 | 19,282,000 | 17,573,000 | 16,623,000 | 15,327,000 | 13,877,000 |
| 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 + $19,282,000K)
= 0.00
The debt-to-capital ratio of Boston Scientific Corp. has shown a decreasing trend over the past five years, indicating a relative improvement in the company's financial leverage and capital structure. As of December 31, 2023, the ratio stood at 0.32, down from 0.34 in the previous year and significantly lower than the ratios reported in 2020 (0.37) and 2019 (0.42).
A debt-to-capital ratio of 0.32 implies that 32% of Boston Scientific's capital structure is financed by debt, while the remaining 68% is funded by equity. This indicates a moderate reliance on debt financing, which can have both advantages and risks for the company.
The downward trend in the debt-to-capital ratio suggests that Boston Scientific has been gradually reducing its reliance on debt to finance its operations and investments. This can potentially lower the company's financial risk, reduce interest expenses, and improve its creditworthiness in the eyes of investors and creditors.
Overall, a decreasing debt-to-capital ratio for Boston Scientific Corp. is generally viewed as a positive indicator of financial health and prudent capital management strategy.
Peer comparison
Dec 31, 2023