Centene Corp (CNC)

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 17,710,000 17,938,000 18,571,000 16,682,000 13,638,000
Total stockholders’ equity US$ in thousands 25,840,000 24,057,000 26,795,000 25,773,000 12,551,000
Debt-to-capital ratio 0.41 0.43 0.41 0.39 0.52

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $17,710,000K ÷ ($17,710,000K + $25,840,000K)
= 0.41

The debt-to-capital ratio of Centene Corp. has exhibited fluctuations over the past five years. The ratio decreased from 0.52 in 2019 to 0.39 in 2020, indicating a reduction in debt relative to total capital. Subsequently, there was a slight increase to 0.41 in 2021, followed by a rise to 0.43 in 2022. The most recent data for Dec 31, 2023, shows a decrease in the ratio to 0.41.

Overall, the trend suggests that Centene Corp. has been actively managing its debt levels relative to its capital base. A lower debt-to-capital ratio indicates that the company is relying less on debt financing and may have improved financial stability. However, it is essential to consider other financial metrics and industry benchmarks to gain a more comprehensive understanding of the company's financial health and leverage position.