IDEXX Laboratories Inc (IDXX)

Debt-to-equity 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-equity ratio		0.42	1.14	1.12	1.36	3.94

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $622,883K ÷ $1,484,530K
= 0.42

The debt-to-equity ratio of Idexx Laboratories, Inc. has fluctuated over the past five years. In 2023, the ratio decreased to 0.64 from 2.22 in 2022, indicating a significant reduction in the company's reliance on debt to finance its operations compared to the previous year. This could signal a stronger financial position and reduced financial risk for the company in 2023.

When comparing the 2023 ratio to the ratios in 2021, 2020, and 2019, it is noteworthy that the debt-to-equity ratio has been on a downward trend since 2019. The company has gradually reduced its debt levels relative to its equity over this period, which suggests a more conservative capital structure and improved financial stability.

Overall, the decreasing trend in the debt-to-equity ratio for Idexx Laboratories, Inc. indicates that the company has been effectively managing its debt and equity levels in recent years. This trend could potentially enhance the company's ability to weather economic downturns and pursue growth opportunities while maintaining a healthy balance sheet.