Fulgent Genetics Inc (FLGT)
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 | 2,964 | 3,372 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,136,100 | 1,266,680 | 1,158,750 | 569,387 | 82,777 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,964K ÷ ($2,964K + $1,136,100K)
= 0.00
The debt-to-capital ratio of Fulgent Genetics Inc has shown a decreasing trend over the past five years. In 2023, the ratio stands at 0.00, indicating that the company has no debt in its capital structure for that year. This suggests a financially conservative approach by the company, relying more on equity financing than debt.
In 2022 and 2021, the debt-to-capital ratio was consistent at 0.02, showing a stable level of debt relative to the company's capital structure. In 2020, there was a slight increase in the ratio to 0.03, indicating a higher proportion of debt in the company's capital mix compared to the previous years.
Interestingly, in 2019, the debt-to-capital ratio was also at 0.00, suggesting that the company had no debt in its capital structure for that year as well. The fluctuation in the ratio over the years could be attributed to changes in the company's financing decisions and capital structure management.
Overall, Fulgent Genetics Inc's debt-to-capital ratio indicates a low level of debt reliance in its capital structure, showcasing a conservative financial strategy. This may imply lower financial risk and greater stability for the company in terms of debt obligations and interest payments.
Peer comparison
Dec 31, 2023