The Ensign Group Inc (ENSG)
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 | 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-equity ratio | 0.10 | 0.12 | 0.15 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $145,497K ÷ $1,491,860K
= 0.10
The debt-to-equity ratio of Ensign Group Inc has shown a decreasing trend over the past five years, indicating a positive development in the company's leverage position.
The ratio was 0.10 as of December 31, 2023, which means that for every $1 of equity, the company had $0.10 of debt. This implies a low level of financial leverage and a relatively strong equity position to support the company's operations and expansion.
Comparing this to the previous years, the debt-to-equity ratio was 0.12 in 2022, 0.15 in 2021, 0.14 in 2020, and notably high at 0.50 in 2019. The decreasing trend indicates that Ensign Group Inc has been gradually reducing its reliance on debt financing in relation to equity, which is generally viewed positively by investors and creditors.
The decreasing debt-to-equity ratio suggests that the company may have been paying down its debt, improving its financial stability, and potentially strengthening its equity base. Overall, Ensign Group Inc's declining trend in the debt-to-equity ratio indicates a more conservative capital structure over the years.
Peer comparison
Dec 31, 2023