Fortrea Holdings Inc. (FTRE)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||
|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,565,900 | 1,572,400 | 1,578,900 |
| Total stockholders’ equity | US$ in thousands | 1,738,800 | 1,694,300 | 1,751,100 |
| Debt-to-equity ratio | 0.90 | 0.93 | 0.90 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,565,900K ÷ $1,738,800K
= 0.90
The debt-to-equity ratio of Fortrea Holdings Inc. has been relatively stable over the past three quarters, standing at 0.90 as of December 31, 2023, compared to 0.93 as of September 30, 2023, and 0.90 as of June 30, 2023. This indicates that the company is financing its operations through a combination of debt and equity, with a higher proportion of equity relative to debt. A ratio below 1.0 suggests that the company relies more on equity financing than debt financing, which can be seen as a positive sign in terms of financial stability and risk management. Overall, Fortrea Holdings Inc. appears to have a prudent capital structure with a manageable level of debt in relation to its equity.
Peer comparison
Dec 31, 2023