ESAB Corp (ESAB)
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 | 1,769,000 | 1,607,400 | 1,350,210 | 2,460,740 | 2,502,630 |
| 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 + $1,769,000K)
= 0.00
ESAB Corp's debt-to-capital ratio, as evidenced by the data provided, has consistently remained at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not utilized debt as a significant component of its capital structure during this period. A debt-to-capital ratio of 0% implies that ESAB Corp's capital is predominantly from equity sources rather than debt financing. This may be seen as a positive sign by investors and creditors, suggesting a lower financial risk as the company is not heavily reliant on borrowed funds. It also indicates a strong financial position and the ability to fund operations and growth using internal resources and equity financing.
Peer comparison
Dec 31, 2024