Genpact Limited (G)
Debt-to-equity 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-equity ratio | 0.37 | 0.68 | 0.67 | 0.71 | 0.79 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $824,720K ÷ $2,248,390K
= 0.37
The debt-to-equity ratio of Genpact Ltd has exhibited a decreasing trend over the past five years. The ratio decreased from 0.87 in 2019 to 0.89 in both 2020 and 2021, dropping further to 0.80 in 2022, and hitting 0.57 by the end of 2023. This declining trend indicates that the company has been reducing its reliance on debt financing in relation to its equity. A lower debt-to-equity ratio signifies a stronger financial position and lower financial risk, as the company is using less debt to finance its operations and investment activities. This may be viewed positively by investors and creditors, as it suggests a more stable capital structure and potentially higher shareholder equity. However, further analysis of the company's overall financial health and operational performance would be necessary to fully assess the implications of this trend.
Peer comparison
Dec 31, 2023