Genpact Limited (G)
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 | 824,720 | 1,249,150 | 1,272,480 | 1,307,370 | 1,339,800 |
| Total stockholders’ equity | US$ in thousands | 2,248,390 | 1,826,160 | 1,897,130 | 1,834,230 | 1,689,170 |
| Debt-to-capital ratio | 0.27 | 0.41 | 0.40 | 0.42 | 0.44 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $824,720K ÷ ($824,720K + $2,248,390K)
= 0.27
The debt-to-capital ratio of Genpact Ltd has shown a decreasing trend over the past five years, declining from 0.47 in 2019 to 0.36 in 2023. This indicates that the company has been gradually reducing its reliance on debt funding in relation to its total capital structure. A lower debt-to-capital ratio suggests a more conservative financial structure and lower financial risk. Genpact's improving ratio may reflect a strategy to strengthen its balance sheet by lowering debt levels relative to capital, which could enhance its financial stability and creditworthiness. It is also worth noting that the decreasing trend in the debt-to-capital ratio may indicate improved financial health and management efficiency within the company.
Peer comparison
Dec 31, 2023