Innoviva Inc (INVA)

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	446,234	444,180	394,653	385,517	377,120
Total stockholders’ equity	US$ in thousands	674,955	565,788	414,743	539,912	313,495
Debt-to-capital ratio		0.40	0.44	0.49	0.42	0.55

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $446,234K ÷ ($446,234K + $674,955K)
= 0.40

The debt-to-capital ratio of Innoviva Inc has shown fluctuations over the past five years. In 2023, the ratio decreased to 0.40 from 0.49 in 2022 and 2021. This indicates that the company's level of debt relative to its total capital has decreased, which may suggest improved financial stability or debt management. Compared to 2020 when the ratio was 0.42, the 2023 ratio shows a slightly lower reliance on debt financing.

However, it should be noted that the debt-to-capital ratio was higher in 2019 at 0.55, indicating a significant reduction in leverage over the past five years. Overall, the trend in the debt-to-capital ratio suggests that Innoviva Inc has been gradually reducing its debt burden relative to its capital structure, which could be a positive sign for the company's financial health and risk management.