Globus Medical (GMED)
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 | 417,400 | — | — | — | — |
| Total assets | US$ in thousands | 5,086,080 | 2,076,130 | 1,957,260 | 1,679,480 | 1,532,080 |
| Debt-to-assets ratio | 0.08 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $417,400K ÷ $5,086,080K
= 0.08
The debt-to-assets ratio of Globus Medical Inc has exhibited a consistent and relatively low trend over the past five years. In 2023, the ratio increased to 0.08 from 0.00 in the previous year, indicating a slight increase in the company's debt relative to its total assets. However, it is worth noting that the ratio was consistently at 0.00 from 2019 to 2022, suggesting a negligible level of debt compared to total assets during those years.
A debt-to-assets ratio of 0.08 in 2023 implies that for every $1 of assets, Globus Medical Inc has $0.08 of debt. This ratio signifies that the company relies minimally on debt financing to support its operations and investments, as a lower ratio generally indicates lower financial risk and greater financial stability.
Overall, the gradual increase in the debt-to-assets ratio from 0.00 to 0.08 may reflect a strategic decision by Globus Medical Inc to utilize debt financing for growth opportunities or other capital requirements. However, the company's consistent history of maintaining a low debt-to-assets ratio suggests a conservative approach to capital structure management, which can be viewed positively by investors and lenders.
Peer comparison
Dec 31, 2023