Embecta Corp (EMBC)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| 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 stockholders’ equity | US$ in thousands | -793,500 | -821,700 | -809,400 | -822,600 | -836,100 | -891,400 | -847,600 | -967,500 | 550,500 |
| Debt-to-capital ratio | 1.99 | 2.06 | 2.03 | 2.06 | 2.10 | 2.26 | 2.13 | 3.22 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,592,900K ÷ ($1,592,900K + $-793,500K)
= 1.99
The debt-to-capital ratio of Embecta Corp has shown fluctuations over the past few quarters. The ratio indicates the proportion of the company's capital structure that is financed by debt. A higher ratio suggests a greater reliance on debt to fund operations and investments.
In the most recent quarter, as of December 31, 2023, the debt-to-capital ratio stood at 1.99, showing a slight decrease from the previous quarter. This could indicate a slightly lower level of debt relative to the company's capital base. However, the ratio remains above 1, indicating that debt is a significant component of the company's capital structure.
Looking back over the past year, the trend in the debt-to-capital ratio has been somewhat volatile, with fluctuations between 2.00 and 3.00. The ratio peaked at 3.22 in March 31, 2022, which may have indicated a relatively high level of debt compared to capital during that period.
Overall, the debt-to-capital ratio of Embecta Corp suggests a varying degree of reliance on debt financing over the quarters analyzed. It would be important for stakeholders to monitor this ratio regularly to assess the company's leverage and financial risk.
Peer comparison
Dec 31, 2023