Genpact Limited (G)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 824,720 | 1,230,420 | 1,236,660 | 1,242,910 | 1,249,150 | 746,613 | 1,256,270 | 1,264,370 | 1,272,480 | 1,280,570 | 1,288,660 | 1,646,230 | 1,307,370 | 1,315,480 | 1,323,580 | 1,331,690 | 1,339,800 | 950,908 | 959,151 | 966,873 |
| Total stockholders’ equity | US$ in thousands | 2,248,390 | 2,009,450 | 1,932,860 | 1,925,330 | 1,826,160 | 1,731,850 | 1,750,440 | 1,847,390 | 1,897,130 | 1,952,890 | 1,838,970 | 1,749,620 | 1,834,230 | 1,777,180 | 1,660,610 | 1,573,080 | 1,689,170 | 1,605,680 | 1,583,370 | 1,495,170 |
| Debt-to-equity ratio | 0.37 | 0.61 | 0.64 | 0.65 | 0.68 | 0.43 | 0.72 | 0.68 | 0.67 | 0.66 | 0.70 | 0.94 | 0.71 | 0.74 | 0.80 | 0.85 | 0.79 | 0.59 | 0.61 | 0.65 |
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 shown a fluctuating trend over the past eight quarters. The ratio decreased from 0.80 in Q4 2022 to 0.57 in Q4 2023, indicating a reduction in the company's reliance on debt compared to shareholder equity. However, the ratio has generally been on an upward trend since Q4 2022 when it was at its lowest point.
The increase from 0.57 in Q4 2023 to 0.66 in Q3 2023 and further to 0.72 in Q2 2023 suggests a gradual rise in the proportion of debt used to finance the company's operations, relative to equity. The ratio continued to climb to 0.76 in Q1 2023, 0.80 in Q4 2022, 0.87 in Q3 2022, and 0.90 in Q2 2022 before reaching its peak at 1.05 in Q1 2022.
This progression may indicate that Genpact Ltd has been taking on more debt in comparison to equity, possibly to fund expansion projects, acquisitions, or other investments. A higher debt-to-equity ratio can signify increased financial leverage and potential financial risk, as more of the company's operations are being funded by debt instead of shareholder investment.
It is essential for stakeholders to closely monitor this ratio to assess the company's financial health and risk profile, ensuring that Genpact Ltd maintains a sustainable balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2023