Hologic Inc (HOLX)
Debt-to-capital ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,531,200 | 2,808,400 | 2,712,200 | 2,713,900 | 2,783,600 |
| Total stockholders’ equity | US$ in thousands | 5,016,900 | 4,876,200 | 4,218,600 | 2,705,200 | 2,115,700 |
| Debt-to-capital ratio | 0.34 | 0.37 | 0.39 | 0.50 | 0.57 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,531,200K ÷ ($2,531,200K + $5,016,900K)
= 0.34
The debt-to-capital ratio for Hologic, Inc. has shown a decreasing trend over the past five years, indicating an improving financial leverage position. In 2023, the ratio stands at 0.36, which means that 36% of the company's capital is funded by debt. This signifies a decrease from the previous year's ratio of 0.37 and a notable improvement from the ratio of 0.59 in 2019. The declining trend suggests that the company has been reducing its reliance on debt financing in relation to its total capital, which may indicate a more conservative approach to managing its capital structure and financial risk. However, it is essential to understand the factors driving this trend to assess the potential implications for the company's overall financial health and capital management strategy.
Peer comparison
Sep 30, 2023