ESAB Corp (ESAB)
Debt-to-assets 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 | ||
|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,018,060 | 1,089,330 | 1,159,100 | 1,216,870 | 1,218,640 | 1,132,420 | 1,182,190 | — |
| Total assets | US$ in thousands | 3,828,630 | 3,756,040 | 3,862,840 | 3,849,140 | 3,754,020 | 3,539,900 | 3,673,700 | 3,781,350 |
| Debt-to-assets ratio | 0.27 | 0.29 | 0.30 | 0.32 | 0.32 | 0.32 | 0.32 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,018,060K ÷ $3,828,630K
= 0.27
ESAB Corp's debt-to-assets ratio has shown a declining trend over the past five quarters, indicating a decreasing reliance on debt to finance its assets. The ratio decreased from 0.32 in Q4 2022 to 0.27 in Q4 2023, reflecting a reduction in the proportion of debt relative to its total assets. This trend suggests that ESAB Corp has been able to effectively manage its debt levels or increase its asset base without significantly increasing debt. A lower debt-to-assets ratio generally indicates a lower financial risk and healthier financial position for the company. However, it is important to consider the industry benchmarks and overall financial goals of the company when evaluating the significance of this trend.
Peer comparison
Dec 31, 2023