ExlService Holdings Inc (EXLS)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	135,000	220,000	0	201,961	194,131
Total stockholders’ equity	US$ in thousands	889,437	758,179	693,156	719,172	670,001
Debt-to-capital ratio		0.13	0.22	0.00	0.22	0.22

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $135,000K ÷ ($135,000K + $889,437K)
= 0.13

The debt-to-capital ratio of ExlService Holdings Inc has shown a decreasing trend over the past five years, indicating an improvement in the company's leverage position.

As of December 31, 2023, the debt-to-capital ratio stands at 0.18, lower than the ratios reported in the previous years (0.25 in 2022, 0.27 in 2021, 0.24 in 2020, and 0.26 in 2019). This decrease suggests that ExlService Holdings Inc has been reducing its reliance on debt financing in relation to its total capital structure.

A lower debt-to-capital ratio generally indicates a lower financial risk for the company as it implies a smaller proportion of debt in the overall capital mix. This can be a positive signal for investors and creditors, as it shows the company's ability to rely more on equity financing or generate sufficient internal funds to support its operations and growth initiatives.

Overall, the declining trend in ExlService Holdings Inc's debt-to-capital ratio signals an improved financial health and potentially greater stability in its capital structure over the years. It is important for the company to continue monitoring and managing its debt levels effectively to maintain a healthy balance between debt and equity financing.