DaVita HealthCare Partners Inc (DVA)
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 | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,056,100 | 712,326 | 755,508 | 1,383,570 | 2,133,410 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,056,100K)
= 0.00
The debt-to-capital ratio of DaVita Inc has shown an increasing trend over the past five years, rising from 0.81 in 2019 to 0.90 in 2023. This indicates that the company has been relying more on debt to finance its operations and growth in comparison to its total capital structure.
A debt-to-capital ratio of 0.90 as of December 31, 2023, suggests that 90% of DaVita's capital structure is funded by debt, while the remaining 10% is funded by equity. This indicates a relatively high level of financial leverage, which could potentially increase the company's financial risk due to higher interest obligations and repayment requirements.
The gradual increase in the debt-to-capital ratio over the years may imply that DaVita has been leveraging more debt to support its business activities, possibly for investments, acquisitions, or expansion projects. While debt can provide financial flexibility and tax benefits, too much reliance on debt can also lead to increased vulnerability to economic downturns or changes in interest rates.
It is essential for investors and stakeholders to closely monitor DaVita's debt levels and management strategies to ensure the company maintains a healthy balance between debt and equity financing, balancing growth opportunities with financial stability.
Peer comparison
Dec 31, 2023