Genpact Limited (G)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 824,720 | 1,249,150 | 1,272,480 | 1,307,370 | 1,339,800 |
| Total assets | US$ in thousands | 4,805,710 | 4,588,810 | 4,975,270 | 4,873,510 | 4,454,180 |
| Debt-to-assets ratio | 0.17 | 0.27 | 0.26 | 0.27 | 0.30 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $824,720K ÷ $4,805,710K
= 0.17
The debt-to-assets ratio of Genpact Ltd has shown a downward trend over the past five years, indicating a consistent improvement in the company's financial leverage and ability to meet its financial obligations.
From 2019 to 2023, the ratio decreased from 0.33 to 0.27, suggesting that Genpact has been gradually reducing its reliance on debt to finance its assets. A lower debt-to-assets ratio is generally considered favorable as it signifies a lower degree of financial risk and greater financial stability for the company.
This trend may indicate that Genpact has been managing its debt levels effectively, possibly through strategic debt repayments or capital structure optimization. A declining debt-to-assets ratio can also indicate improved profitability, increased asset base, or a combination of both factors contributing to a healthier balance sheet.
Overall, the decreasing trend in Genpact's debt-to-assets ratio over the years reflects positively on the company's financial health and prudent financial management practices.
Peer comparison
Dec 31, 2023