Healthcare Services Group Inc (HCSG)
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 | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 456,616 | 418,279 | 452,677 | 480,461 | 460,305 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $456,616K
= 0.00
The debt-to-equity ratio of Healthcare Services Group, Inc. has shown a consistent and relatively low level of debt relative to equity over the past five years. In 2023, the ratio stands at 0.05, indicating that the company has $0.05 in debt for every $1 of equity. This trend has been relatively stable, with slight fluctuations within a narrow range.
In 2021 and 2020, the company had a debt-to-equity ratio of 0.00, suggesting a debt-free position or a very minimal level of debt compared to equity. However, it is essential to note that having no debt may also mean missed opportunities for leveraging financial resources for potential growth.
The debt-to-equity ratio is a measure of financial leverage, indicating the extent to which a company relies on debt to finance its operations. A lower ratio like that of Healthcare Services Group, Inc. reflects a conservative approach to capital structure, where the company has a lower level of financial risk due to the limited use of debt. It also indicates strong financial health and stability, as the company is not overly reliant on borrowing to fund its operations or expansion.
Overall, the consistent low debt-to-equity ratio of Healthcare Services Group, Inc. signifies a prudent financial management strategy that prioritizes a healthy balance between debt and equity, positioning the company well to weather economic uncertainties and pursue strategic initiatives while maintaining financial stability.