IDEXX Laboratories Inc (IDXX)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,484,530	608,737	689,992	632,088	177,473
Debt-to-capital ratio		0.30	0.53	0.53	0.58	0.80

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $622,883K ÷ ($622,883K + $1,484,530K)
= 0.30

The debt-to-capital ratio for Idexx Laboratories, Inc. has shown a fluctuating trend over the last five years. In 2019, the ratio was relatively high at 0.85, indicating that a significant portion of the company's capital structure was funded by debt. However, there has been a decreasing trend in the ratio since then, reaching 0.39 at the end of 2023.

This downward trend in the debt-to-capital ratio suggests that the company has been gradually reducing its reliance on debt to finance its operations and investments, moving towards a more balanced capital structure. A lower ratio implies that a smaller proportion of the company's capital is derived from debt, which can reduce financial risk and vulnerability to interest rate fluctuations.

Overall, the decreasing debt-to-capital ratio for Idexx Laboratories, Inc. indicates positive progress in managing its debt levels and maintaining a healthier capital structure in recent years. However, it is essential to continue monitoring the ratio to ensure sustainable financial health and stability for the company.