Enovis Corp (ENOV)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 466,164 | 40,000 | 2,078,620 | 2,204,170 | 2,284,180 |
| Total assets | US$ in thousands | 4,509,330 | 4,273,250 | 8,515,910 | 7,351,550 | 7,386,830 |
| Debt-to-assets ratio | 0.10 | 0.01 | 0.24 | 0.30 | 0.31 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $466,164K ÷ $4,509,330K
= 0.10
The debt-to-assets ratio of Enovis Corp has exhibited fluctuations over the past five years. As of December 31, 2023, the ratio stands at 0.10, indicating that only 10% of the company's total assets are financed by debt. This represents a decrease from the previous year's ratio of 0.06, suggesting a reduction in the company's reliance on debt for funding its assets.
Comparing the current ratio to 2021, where it was 0.25, and to 2020 and 2019, where it was even higher at 0.30 and 0.31 respectively, it is evident that Enovis Corp has significantly improved its debt management and reduced its leverage over the past years. This downward trend in the debt-to-assets ratio indicates a lower financial risk for the company, as it is becoming less dependent on borrowed funds to finance its operations and investments.
Overall, the decreasing trend in the debt-to-assets ratio reflects a positive financial position for Enovis Corp, enhancing its financial stability and potentially improving its creditworthiness in the eyes of investors and creditors.
Peer comparison
Dec 31, 2023