The Ensign Group Inc (ENSG)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 145,497 | 146,453 | 147,401 | 148,339 | 149,269 | 150,191 | — | — | 152,883 | — | — | — | — | — | — | — | — | — | 268,179 | 240,660 |
| Total stockholders’ equity | US$ in thousands | 1,491,860 | 1,459,750 | 1,387,780 | 1,318,170 | 1,247,330 | 1,180,060 | 1,120,170 | 1,071,590 | 1,020,770 | 979,200 | 928,593 | 876,047 | 818,077 | 764,755 | 715,997 | 675,236 | 654,197 | 686,259 | 662,052 | 632,705 |
| Debt-to-equity ratio | 0.10 | 0.10 | 0.11 | 0.11 | 0.12 | 0.13 | 0.00 | 0.00 | 0.15 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.41 | 0.38 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $145,497K ÷ $1,491,860K
= 0.10
Ensign Group Inc's debt-to-equity ratio has been relatively stable over the past eight quarters, ranging from 0.10 to 0.15. The ratio measures the company's level of financial leverage and indicates the proportion of financing that comes from debt versus equity. A lower ratio typically suggests a lower financial risk and indicates that the company relies more on equity to finance its operations.
In the case of Ensign Group Inc, the consistent low debt-to-equity ratio hovering around 0.10 to 0.15 reflects a conservative capital structure. This implies that the company has a relatively low level of debt compared to equity, which can be seen as a positive indicator of financial health and stability. It suggests that the company is not overly reliant on debt for funding its operations and investments, which can reduce the risk of financial distress, especially in times of economic uncertainty or market downturns.
Overall, the trend of Ensign Group Inc's debt-to-equity ratio indicates a prudent approach to capital structure management, with a focus on maintaining a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023