ESAB Corp (ESAB)
Debt-to-equity 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-equity ratio | 0.63 | 0.73 | 0.77 | 0.86 | 0.90 | 0.94 | 0.95 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,018,060K ÷ $1,607,400K
= 0.63
ESAB Corp's debt-to-equity ratio has shown a declining trend over the past five quarters, indicating a gradual improvement in the company's overall financial leverage. The ratio decreased from 0.90 in Q4 2022 to 0.63 in Q4 2023. This signifies that ESAB has been reducing its reliance on debt financing and moving towards a more balanced and sustainable capital structure. A lower debt-to-equity ratio suggests that the company is using less debt relative to equity to finance its operations, which can lead to lower financial risk and increased financial stability. Overall, the decreasing trend in the debt-to-equity ratio is a positive indication of ESAB Corp's financial health and prudent financial management practices.
Peer comparison
Dec 31, 2023