Embecta Corp (EMBC)

Debt-to-assets ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022
Long-term debt	US$ in thousands	1,565,300	1,593,900	1,598,100
Total assets	US$ in thousands	1,285,300	1,214,400	1,086,400
Debt-to-assets ratio		1.22	1.31	1.47

September 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,565,300K ÷ $1,285,300K
= 1.22

The debt-to-assets ratio of Embecta Corp has shown a declining trend over the past three years, indicating an improvement in the company's debt management. The ratio decreased from 1.47 in 2022 to 1.31 in 2023 and further to 1.22 in 2024. This suggests that the company has been reducing its level of debt relative to its total assets, which can be a positive sign of financial health and stability.

A lower debt-to-assets ratio generally indicates that the company is less reliant on debt financing to fund its operations and investments, which can reduce financial risk and increase financial flexibility. However, it is important to note that the optimal level of debt varies by industry and company circumstances, and a very low ratio may also indicate underutilization of debt as a source of capital.

Overall, the decreasing trend in Embecta Corp's debt-to-assets ratio suggests that the company may be making efforts to strengthen its financial position and reduce its debt burden relative to its total assets. Further analysis of the company's overall financial performance and capital structure would provide a more comprehensive understanding of its financial health.