ESAB Corp (ESAB)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,607,400 | 1,500,810 | 1,506,310 | 1,419,580 | 1,350,210 | 1,209,180 | 1,241,860 | 2,476,850 |
| Debt-to-capital ratio | 0.39 | 0.42 | 0.43 | 0.46 | 0.47 | 0.48 | 0.49 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,018,060K ÷ ($1,018,060K + $1,607,400K)
= 0.39
ESAB Corp's debt-to-capital ratio has been on a downward trend from Q4 2022 to Q4 2023, decreasing from 0.47 to 0.39. This indicates that the company has reduced its reliance on debt financing relative to its total capital over this period. A lower debt-to-capital ratio suggests that ESAB Corp has a higher proportion of its capital financed through equity rather than debt, which may reduce its financial risk and increase its financial stability. The decrease in the debt-to-capital ratio could be a positive sign for the company's financial health, as it shows a potential improvement in its capital structure. Monitoring this trend over time can help assess the company's financial leverage and risk management strategies.
Peer comparison
Dec 31, 2023