Hologic Inc (HOLX)
Debt-to-equity ratio
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 2,791,600 | 2,799,700 |
| Total stockholders’ equity | US$ in thousands | 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 | 2,216,500 | 2,159,800 |
| Debt-to-equity ratio | 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 | 1.26 | 1.30 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,522,700K ÷ $4,653,800K
= 0.54
The debt-to-equity ratio of Hologic Inc has fluctuated over the past five years, ranging from 0.50 to 1.32. The ratio indicates the proportion of a company's debt to its shareholders' equity. A lower ratio generally suggests a lower risk as it implies less reliance on debt financing. On the other hand, a higher ratio may indicate higher financial risk due to increased debt levels.
Hologic Inc's debt-to-equity ratio has shown a decreasing trend from 2020 to 2023, indicating a reduction in the company's reliance on debt for financing its operations. The ratio peaked at 1.32 in March 2019 but has since declined, reaching a low of 0.50 in September 2023. This downward trend implies a strengthening financial position and potentially lower risk for investors and creditors.
Overall, a decreasing debt-to-equity ratio for Hologic Inc suggests a more conservative capital structure and improved financial health, which may enhance the company's ability to weather economic downturns and pursue growth opportunities while maintaining a healthy balance between debt and equity.
Peer comparison
Dec 31, 2023