The Ensign Group Inc (ENSG)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 141,585 | 145,497 | 149,269 | 152,883 | — |
| Total stockholders’ equity | US$ in thousands | 1,837,110 | 1,491,860 | 1,247,330 | 1,020,770 | 818,077 |
| Debt-to-equity ratio | 0.08 | 0.10 | 0.12 | 0.15 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $141,585K ÷ $1,837,110K
= 0.08
The debt-to-equity ratio of The Ensign Group Inc has shown a declining trend over the past five years, decreasing from 0.00 in December 2020 to 0.08 in December 2024. This indicates that the company has been relying less on debt financing relative to equity as a source of funds. The decreasing trend in the ratio suggests improved financial stability and reduced financial risk. A lower debt-to-equity ratio is generally viewed positively by investors and lenders as it indicates a healthier balance sheet structure and a lower level of financial leverage. Overall, the company's decreasing debt-to-equity ratio signals a positive trajectory in its financial health and risk management.
Peer comparison
Dec 31, 2024