EPAM Systems Inc (EPAM)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,629,210 | 3,470,890 | 3,001,530 | 2,487,120 | 1,983,020 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $3,629,210K)
= 0.00
Based on the data provided, EPAM Systems Inc's debt-to-capital ratio has consistently been reported as 0.00 from December 31, 2020, to December 31, 2024. A debt-to-capital ratio of 0.00 indicates that the company has not utilized any debt financing in its capital structure during the mentioned periods.
This suggests that EPAM Systems Inc has relied primarily on equity financing to support its operations and growth initiatives. A debt-to-capital ratio of 0.00 typically indicates a low financial risk associated with the company's capital structure, as there is no debt to be repaid or interest expenses to be managed.
Investors and creditors may view a debt-to-capital ratio of 0.00 positively, as it signifies financial stability and the ability to fund operations without incurring debt. However, it is important to note that while a low debt-to-capital ratio may indicate financial strength, it may also signify missed opportunities for tax benefits associated with debt financing.
Overall, the consistent debt-to-capital ratio of 0.00 for EPAM Systems Inc suggests a conservative approach to capital structure management, with a focus on maintaining a strong financial position through equity financing.
Peer comparison
Dec 31, 2024