Embecta Corp (EMBC)

Debt-to-assets ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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	1,565,300	1,590,800	1,591,800	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	1,285,300	1,267,500	1,199,600	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		1.22	1.26	1.33	1.31	1.31	1.27	1.32	1.33	1.47	1.52	1.68	0.00

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 for Embecta Corp has shown a fluctuating trend over the past few quarters. The ratio has been consistently above 1, indicating that the company's total debt exceeds its total assets. This suggests that the company relies heavily on debt financing to support its operations and growth.

The ratio peaked at 1.68 in the first quarter of 2022, implying a higher level of leverage at that time. Subsequently, there was a significant decrease in the ratio to 0.00 in the fourth quarter of 2021, which may be due to a reduction in debt levels or an increase in asset values.

However, the ratio increased again in the following quarters, reaching a recent high of 1.52 in the second quarter of 2022 and then gradually decreasing to 1.22 in the most recent quarter, indicating a slight improvement in the company's debt management.

Overall, the trend in Embecta Corp's debt-to-assets ratio suggests that the company has been managing its debt levels relative to its asset base, albeit with some fluctuations. It is important for the company to continue monitoring and managing its debt effectively to maintain a healthy financial position and ensure sustainable growth.