Halozyme Therapeutics Inc (HALO)

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	1,499,250	1,492,770	787,255	0	383,045
Total stockholders’ equity	US$ in thousands	83,808	169,798	196,953	151,047	91,765
Debt-to-capital ratio		0.95	0.90	0.80	0.00	0.81

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,499,250K ÷ ($1,499,250K + $83,808K)
= 0.95

The debt-to-capital ratio of Halozyme Therapeutics Inc. has been on an upward trend over the past five years, indicating an increasing reliance on debt financing relative to total capital. In 2019, the ratio stood at 0.81, suggesting that 81% of the company's capital structure was funded by debt. This ratio increased to 0.95 by the end of 2023, signaling a shift towards a higher proportion of debt within the company's capital mix.

The rising trend in the debt-to-capital ratio may raise concerns about the company's financial leverage and ability to manage its debt obligations effectively. It implies a potentially heightened risk exposure to fluctuations in interest rates and overall market conditions, which could impact the company's financial stability and flexibility in the long run.

Investors and creditors may closely monitor this ratio as an indicator of Halozyme Therapeutics Inc.'s financial health and risk profile. It is important for the company to carefully balance its debt and equity levels to maintain a sustainable capital structure and mitigate risks associated with excessive leverage.