ESAB Corp (ESAB)
Debt-to-capital ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,769,000 | 1,837,120 | 1,707,970 | 1,640,800 | 1,607,400 | 1,500,810 | 1,506,310 | 1,419,580 | 1,350,210 | 1,209,180 | 1,241,860 | 2,476,850 | 2,460,740 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 has consistently remained at 0.00 for the periods from December 31, 2021, to December 31, 2024. This indicates that the company has not utilized debt as a significant component of its capital structure during these periods. A debt-to-capital ratio of 0.00 implies that the company's total debt is negligible or non-existent relative to its total capital, which includes both debt and equity.
Having a debt-to-capital ratio of 0.00 may suggest that ESAB Corp has been funding its operations and growth primarily through equity financing or retained earnings, rather than relying on external borrowings. While a low or zero debt-to-capital ratio can be viewed positively as it signifies lower financial risk and less financial leverage, it is important to evaluate the overall financial health and performance of the company holistically, considering other financial ratios and metrics alongside the debt-to-capital ratio.
Peer comparison
Dec 31, 2024