Enovis Corp (ENOV)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 3,418,390 | 3,448,080 | 4,617,380 | 3,543,390 | 3,441,430 |
| Debt-to-equity ratio | 0.14 | 0.01 | 0.45 | 0.62 | 0.66 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $466,164K ÷ $3,418,390K
= 0.14
The debt-to-equity ratio of Enovis Corp has fluctuated over the past five years, indicating varying levels of leverage and financial risk. The ratio was relatively low at 0.08 in 2022, suggesting a conservative capital structure with a higher proportion of equity financing compared to debt. However, in 2023, the ratio increased to 0.14, indicating a higher reliance on debt to finance the company's operations.
The significant increase in the debt-to-equity ratio from 2022 to 2023 may signal a shift towards more debt financing or a decrease in equity. This could imply potential concerns regarding the company's financial stability and ability to manage its debt obligations effectively.
In comparison to 2021, where the ratio was 0.45, the current level of 0.14 in 2023 appears more favorable, indicating a lower proportion of debt relative to equity. However, it is recommended for Enovis Corp to monitor its debt levels closely and ensure that the capital structure remains sustainable in the long term.
The trend observed in the debt-to-equity ratio over the past five years suggests that Enovis Corp has been actively managing its capital structure and making adjustments to its financing mix. A lower ratio typically indicates less financial risk, while a higher ratio implies higher leverage and potential financial challenges. It is important for the company to strike a balance between debt and equity financing to maintain financial health and stability.
Peer comparison
Dec 31, 2023