Hologic Inc (HOLX)
Debt-to-equity ratio
| Sep 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,497,100 | 2,514,100 | 2,522,700 | 2,531,200 | 2,789,300 | 2,797,700 | 2,806,200 | 2,808,400 | 2,814,600 | 2,813,400 | 2,819,600 | 2,712,200 | 2,654,700 | 2,672,100 | 2,689,500 | 2,713,900 | 2,731,300 | 2,749,300 | 2,769,400 | 2,783,600 |
| Total stockholders’ equity | US$ in thousands | 5,130,000 | 4,844,400 | 4,653,800 | 5,016,900 | 5,182,000 | 5,300,800 | 5,092,500 | 4,876,200 | 4,997,900 | 4,792,700 | 4,519,100 | 4,218,600 | 3,877,100 | 3,794,400 | 3,267,900 | 2,705,200 | 2,255,100 | 2,086,100 | 2,250,800 | 2,115,700 |
| Debt-to-equity ratio | 0.49 | 0.52 | 0.54 | 0.50 | 0.54 | 0.53 | 0.55 | 0.58 | 0.56 | 0.59 | 0.62 | 0.64 | 0.68 | 0.70 | 0.82 | 1.00 | 1.21 | 1.32 | 1.23 | 1.32 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,497,100K ÷ $5,130,000K
= 0.49
The debt-to-equity ratio of Hologic Inc has fluctuated over the past few quarters, ranging from 0.49 to 1.32. A lower debt-to-equity ratio generally indicates a lower level of financial risk, as it suggests that the company relies less on debt to finance its operations compared to equity.
Looking at the trend, the ratio has increased steadily from 0.49 in September 2024 to a peak of 1.32 in December 2019 before slightly decreasing to 1.23 in March 2020. Subsequently, there was a slight decrease to 1.21 in June 2020. However, from there on, the ratio decreased significantly, reaching 0.49 by September 2024.
The decrease in the debt-to-equity ratio may indicate that the company has been reducing its debt levels relative to equity, which can be seen as a positive sign in terms of the company's financial health and risk management. However, a very low debt-to-equity ratio could also mean that the company is not taking advantage of debt financing to potentially grow the business.
It would be important to further investigate the reasons behind the changes in the debt-to-equity ratio to fully understand the company's financial strategy and performance.
Peer comparison
Sep 30, 2024