Cencora Inc. (COR)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,185,940 | 4,146,110 | 4,159,850 | 4,666,530 | 4,656,030 | 4,632,360 | 4,640,130 | 4,646,710 | 6,412,540 | 6,383,710 | 6,647,180 | 6,147,110 | 3,640,740 | 3,618,260 | 3,620,640 | 3,622,390 | 3,636,110 | 4,033,880 | 4,018,560 | 4,009,500 |
| Total stockholders’ equity | US$ in thousands | 911,703 | 522,003 | 686,018 | 281,686 | -178,131 | -211,559 | 224,299 | 550,309 | 241,546 | 223,354 | 37,962 | -281,756 | -697,222 | -1,018,920 | 3,857,250 | 3,590,590 | 2,954,630 | 2,878,920 | 2,989,420 | 2,921,220 |
| Debt-to-capital ratio | 0.82 | 0.89 | 0.86 | 0.94 | 1.04 | 1.05 | 0.95 | 0.89 | 0.96 | 0.97 | 0.99 | 1.05 | 1.24 | 1.39 | 0.48 | 0.50 | 0.55 | 0.58 | 0.57 | 0.58 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,185,940K ÷ ($4,185,940K + $911,703K)
= 0.82
The debt-to-capital ratio of Cencora Inc. has exhibited some fluctuations over the past eight quarters. The ratio measures the proportion of the company's capital that is financed through debt. A higher ratio indicates a larger reliance on debt for funding operations and expansion.
In the most recent period, as of December 31, 2023, the debt-to-capital ratio stood at 0.84, indicating that 84% of the company's capital was financed through debt. This represents a decrease from the previous quarter, where the ratio was 0.90. The declining trend from the third quarter of 2022, when the ratio was at its highest level of 1.04, suggests that the company has been reducing its debt relative to its capital.
While the decreasing trend in the ratio is generally positive, it's important to note that the ratio is still relatively high, indicating a significant reliance on debt to fund the company's operations. This could potentially pose risks related to interest payments and financial stability, particularly in times of economic uncertainty.
Overall, the company's management should closely monitor this ratio and consider implementing strategies to balance the capital structure and reduce the reliance on debt financing in order to enhance the company's long-term financial health.
Peer comparison
Dec 31, 2023