Collegium Pharmaceutical Inc (COLL)

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	483,838	538,451	201,632	209,594	7,667
Total stockholders’ equity	US$ in thousands	195,431	194,842	202,928	186,031	87,432
Debt-to-capital ratio		0.71	0.73	0.50	0.53	0.08

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $483,838K ÷ ($483,838K + $195,431K)
= 0.71

The debt-to-capital ratio of Collegium Pharmaceutical Inc has fluctuated over the past five years, indicating varying levels of debt relative to the company's total capital structure. In 2019, the ratio was relatively low at 0.12, suggesting a lower reliance on debt financing compared to capital. However, by 2021, there was a significant increase in the ratio to 0.55, indicating a higher proportion of debt to total capital.

Subsequently, the ratio increased further in 2022 to 0.78 before marginally decreasing to 0.77 in 2023. These higher ratios in 2022 and 2023 suggest a greater reliance on debt as a source of funding, which can introduce financial risk due to interest obligations and potential constraints on future investments or operations.

Overall, the trend in the debt-to-capital ratio for Collegium Pharmaceutical Inc indicates an increasing dependence on debt financing over the years, highlighting the importance of monitoring and managing the company's debt levels to maintain a healthy balance between debt and equity in its capital structure.