IDEXX Laboratories Inc (IDXX)

Debt-to-capital 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	622,883	618,813	696,844	696,362	694,387	760,814	767,995	773,381	775,205	778,025	780,079	778,747	858,492	853,316	900,300	698,000	698,910	697,200	701,100	699,800
Total stockholders’ equity	US$ in thousands	1,484,530	1,297,410	1,093,860	841,101	608,737	475,999	457,008	639,798	689,992	754,754	747,460	702,696	632,088	440,576	272,963	107,674	177,473	202,418	171,246	51,562
Debt-to-capital ratio		0.30	0.32	0.39	0.45	0.53	0.62	0.63	0.55	0.53	0.51	0.51	0.53	0.58	0.66	0.77	0.87	0.80	0.77	0.80	0.93

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 of Idexx Laboratories, Inc. has shown a decreasing trend over the past eight quarters, indicating a lower reliance on debt compared to its total capital. In Q4 2023, the debt-to-capital ratio was 0.39, the lowest in the provided data series. This suggests that Idexx Laboratories has been reducing its debt levels relative to its capital base, which can be seen as a positive sign of financial health and stability.

The decreasing trend in the debt-to-capital ratio reflects the company's efforts to manage its debt levels effectively and maintain a strong capital structure. A lower debt-to-capital ratio indicates that a smaller portion of the company's capital structure is financed by debt, which can reduce financial risk and improve the company's ability to weather economic uncertainties or challenges.

Overall, the declining trend in Idexx Laboratories' debt-to-capital ratio indicates a prudent approach to managing its debt levels and maintaining a healthy financial position. Investors and analysts may view this trend positively as it suggests that the company is effectively balancing its debt and equity financing to support its operations and growth initiatives.