Embecta Corp (EMBC)

Debt-to-assets 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
Long-term debt	US$ in thousands	1,592,900	1,593,900	1,595,000	1,596,000	1,597,100	1,598,100	1,599,200	1,403,700	—
Total assets	US$ in thousands	1,217,800	1,214,400	1,252,100	1,210,000	1,196,900	1,086,400	1,049,800	833,500	739,900
Debt-to-assets ratio		1.31	1.31	1.27	1.32	1.33	1.47	1.52	1.68	0.00

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,592,900K ÷ $1,217,800K
= 1.31

The debt-to-assets ratio of Embecta Corp has shown fluctuations over the past period, indicating changes in the company's financial leverage and risk profile. The ratio stood at 1.31 as of December 31, 2023, which means that for every dollar of company assets, $1.31 is financed by debt.

Comparing the trend over the nine quarters provided, there appears to be some variability in the debt-to-assets ratio. From a low of 0.00 on December 31, 2021, the ratio increased steadily, reaching a peak of 1.68 on March 31, 2022, before declining slightly to 1.31 on December 31, 2023.

The higher the debt-to-assets ratio, the greater the company's reliance on debt to finance its operations and investments. A higher ratio may indicate higher financial risk and leverage, which could potentially lead to concerns about the company's ability to meet its debt obligations in the future.

It is important for stakeholders to monitor this ratio over time, along with other financial indicators, to assess the company's overall financial health and risk profile.