Hologic Inc (HOLX)
Debt-to-capital ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,497,100 | 2,531,200 | 2,808,400 | 2,712,200 | 2,713,900 |
| Total stockholders’ equity | US$ in thousands | 5,130,000 | 5,016,900 | 4,876,200 | 4,218,600 | 2,705,200 |
| Debt-to-capital ratio | 0.33 | 0.34 | 0.37 | 0.39 | 0.50 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,497,100K ÷ ($2,497,100K + $5,130,000K)
= 0.33
The debt-to-capital ratio of Hologic Inc has shown a declining trend over the past five years. As of September 30, 2024, the ratio stood at 0.33, indicating that 33% of the company's capital structure was funded by debt. This downward trend suggests that the company has been reducing its reliance on debt to finance its operations and growth initiatives.
The decreasing debt-to-capital ratio could signify improved financial stability and reduced financial risk for Hologic Inc. A lower ratio indicates that the company has a stronger equity position relative to its debt obligations, which could potentially enhance its creditworthiness in the eyes of investors and creditors.
Overall, the decreasing trend in the debt-to-capital ratio for Hologic Inc reflects a positive financial strategy of shifting towards a more balanced and sustainable capital structure over the years. This trend may indicate prudent financial management and a focus on optimizing the company's capital mix to support long-term growth and profitability.
Peer comparison
Sep 30, 2024