IDEXX Laboratories Inc (IDXX)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	622,883	694,387	775,205	858,492	698,910
Total assets	US$ in thousands	3,259,920	2,746,760	2,437,200	2,294,560	1,832,480
Debt-to-assets ratio		0.19	0.25	0.32	0.37	0.38

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $622,883K ÷ $3,259,920K
= 0.19

The debt-to-assets ratio of Idexx Laboratories, Inc. has shown a fluctuating trend over the past five years. A lower ratio indicates a smaller proportion of debt financing compared to assets, suggesting a stronger financial position and lower risk.

In 2023, the ratio decreased to 0.29 from 0.49 in 2022, indicating a significant reduction in the company's reliance on debt to fund its operations and investments. This decrease could signal improved financial stability, better debt management, or increased asset efficiency.

While the ratio in 2023 is the lowest in the five-year period, it is important to note that in 2019, the ratio was relatively high at 0.54, indicating higher debt levels compared to assets at that time. The subsequent downward trend in the ratio from 2019 to 2023 suggests a positive development in the company's capital structure and financial health.

Overall, the decreasing debt-to-assets ratio for Idexx Laboratories, Inc. indicates a positive trend towards a stronger balance sheet with less reliance on debt financing. Analyzing this ratio in conjunction with other financial metrics would provide a more comprehensive understanding of the company's financial performance and risk profile.