Centene Corp (CNC)

Debt-to-equity 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-equity ratio		0.69	0.75	0.69	0.65	1.09

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $17,710,000K ÷ $25,840,000K
= 0.69

The debt-to-equity ratio of Centene Corp. has fluctuated over the past five years. In 2019, the ratio was relatively high at 1.09, indicating that the company had more debt than equity in its capital structure. This may suggest a higher financial risk due to a greater reliance on debt financing.

Subsequently, the ratio decreased in the following years, reaching its lowest point at 0.65 by the end of 2020. A lower debt-to-equity ratio typically implies a more conservative financial structure with a higher proportion of equity financing compared to debt. This could signal improved financial stability and lower risk for the company.

However, there was a slight increase in the ratio in 2021 and 2022, standing at 0.70 and 0.75 respectively. This uptrend suggests that Centene Corp. may have increased its debt levels relative to equity during those periods.

By the end of 2023, the ratio stood at 0.69, which was slightly lower compared to the previous year. This indicates that Centene Corp. had a decreased reliance on debt financing relative to equity, potentially reflective of a more balanced capital structure.

Overall, the debt-to-equity ratio analysis suggests that Centene Corp. has experienced fluctuations in its capital structure over the years, with periods of both increased and decreased reliance on debt financing. Further examination of the company's financial health and risk management strategies would be warranted to fully assess the impacts of these changes on its overall financial position.