Haemonetics Corporation (HAE)

Debt-to-capital ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Long-term debt	US$ in thousands	797,564	754,102	559,441	690,592	305,513
Total stockholders’ equity	US$ in thousands	959,959	817,997	749,424	731,670	587,109
Debt-to-capital ratio		0.45	0.48	0.43	0.49	0.34

March 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $797,564K ÷ ($797,564K + $959,959K)
= 0.45

Haemonetics Corporation's debt-to-capital ratio has fluctuated over the past five years, ranging from 0.34 to 0.49. The ratio indicates the proportion of the company's capital structure that is financed by debt. A higher ratio suggests a greater reliance on debt financing, which may indicate increased financial risk due to higher interest payments and repayment obligations. Conversely, a lower ratio may suggest a more conservative approach to debt financing.

In 2020, the debt-to-capital ratio was at its lowest point of 0.34, indicating a lower proportion of debt in the capital structure. However, the ratio increased in 2021 to 0.49, signaling a higher reliance on debt financing that year. Subsequently, the ratio decreased to 0.43 in 2022 before rising again to 0.48 in 2023. In the most recent period ending March 31, 2024, the ratio decreased slightly to 0.45, which may imply a modest reduction in debt relative to total capital.

Overall, Haemonetics Corporation's debt-to-capital ratio trend suggests a degree of variability in its capital structure over the years, highlighting the company's flexibility in managing its debt obligations. Further analysis of the company's debt levels, profitability, and cash flow position would provide additional insights into its overall financial health and risk profile.