Centene Corp (CNC)
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 | 17,710,000 | 17,938,000 | 18,571,000 | 16,682,000 | 13,638,000 |
| Total assets | US$ in thousands | 84,641,000 | 76,870,000 | 78,375,000 | 68,719,000 | 40,994,000 |
| Debt-to-assets ratio | 0.21 | 0.23 | 0.24 | 0.24 | 0.33 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $17,710,000K ÷ $84,641,000K
= 0.21
Centene Corp.'s debt-to-assets ratio has displayed a declining trend over the past five years, indicating improved financial health in terms of leverage. In particular, the ratio decreased from 0.33 in 2019 to 0.21 in 2023. This suggests that the company has been effectively managing its debt levels in relation to its assets, implying lower financial risk and potentially greater stability.
A debt-to-assets ratio of 0.21 in 2023 means that for every $1 of assets, the company has $0.21 in debt. This indicates that Centene Corp. relies less on borrowed funds to finance its operations and investments. A lower debt-to-assets ratio generally signifies a stronger financial position and a decreased dependency on external financing.
Overall, the decreasing trend in Centene Corp.'s debt-to-assets ratio is a positive indicator for investors and stakeholders, reflecting prudent debt management practices and potentially enhanced long-term sustainability for the company.
Peer comparison
Dec 31, 2023