EPAM Systems Inc (EPAM)

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	26,126	27,693	30,234	25,038	25,074
Total stockholders’ equity	US$ in thousands	3,470,890	3,001,530	2,487,120	1,983,020	1,596,140
Debt-to-capital ratio		0.01	0.01	0.01	0.01	0.02

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $26,126K ÷ ($26,126K + $3,470,890K)
= 0.01

The debt-to-capital ratio of EPAM Systems Inc has been relatively stable over the past five years, ranging between 0.01 and 0.02. This indicates that the company has maintained a conservative capital structure with a low level of debt relative to its total capital. A lower debt-to-capital ratio signifies that the company relies more on equity financing rather than debt to fund its operations and investments. This can be seen as a positive indicator of financial stability and lower risk, as the company has less financial leverage and is less vulnerable to fluctuations in interest rates or debt servicing requirements. Overall, the consistent low debt-to-capital ratio of EPAM Systems Inc suggests prudent financial management and a focus on maintaining a healthy balance between debt and equity in its capital structure.