The Ensign Group Inc (ENSG)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 145,497 | 149,269 | 152,883 | — | — |
| Total stockholders’ equity | US$ in thousands | 1,491,860 | 1,247,330 | 1,020,770 | 818,077 | 654,197 |
| Debt-to-capital ratio | 0.09 | 0.11 | 0.13 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $145,497K ÷ ($145,497K + $1,491,860K)
= 0.09
The debt-to-capital ratio of Ensign Group Inc has shown a decreasing trend over the past five years, indicating improvements in the company's capital structure and debt management. The ratio decreased from 0.33 in 2019 to 0.09 in 2023. This suggests that Ensign Group Inc has been effectively reducing its reliance on debt financing in relation to its total capital, which could be viewed positively by investors and creditors. The decreasing trend in the debt-to-capital ratio may signify enhanced financial stability and reduced financial risk for the company. Moreover, a lower debt-to-capital ratio generally indicates a healthier financial position and better debt repayment capacity for the company. Overall, the declining trend in Ensign Group Inc's debt-to-capital ratio reflects prudent financial management practices and a positive trajectory for the company.
Peer comparison
Dec 31, 2023