Collegium Pharmaceutical Inc (COLL)

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	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-equity ratio		2.48	2.76	0.99	1.13	0.09

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $483,838K ÷ $195,431K
= 2.48

The debt-to-equity ratio of Collegium Pharmaceutical Inc has shown a fluctuating trend over the past five years. In 2019, the ratio was 0.13, indicating a low level of debt relative to equity. However, there was a significant increase in the ratio in 2020 to 1.38, signifying a higher level of debt in comparison to equity.

Subsequently, in 2021, the debt-to-equity ratio further increased to 1.23, suggesting that the company continued to rely more on debt financing as opposed to equity. This trend continued into 2022 and 2023, with the ratio reaching 3.60 and 3.41 respectively.

The recent upward trend in the debt-to-equity ratio may raise concerns about Collegium Pharmaceutical Inc's financial risk and leverage. It indicates that the company may be increasingly leveraging debt to finance its operations or growth initiatives, which could potentially expose it to higher financial risk, especially in periods of economic uncertainty or rising interest rates.