Innoviva Inc (INVA)

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	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-equity ratio		0.66	0.79	0.95	0.71	1.20

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $446,234K ÷ $674,955K
= 0.66

The debt-to-equity ratio of Innoviva Inc has fluctuated over the past five years. In 2023, the company had a debt-to-equity ratio of 0.66, indicating that for every dollar of equity, the company had $0.66 of debt. This ratio decreased from the previous year, where it was 0.96 in 2022.

Comparing the ratios over the five-year period, we can see that the company's debt-to-equity ratio was highest in 2019 at 1.20 and lowest in 2023 at 0.66. A higher debt-to-equity ratio suggests that the company is more reliant on debt financing, while a lower ratio indicates a stronger equity position relative to debt.

Overall, the decreasing trend in the debt-to-equity ratio from 2022 to 2023 may signify that the company is reducing its reliance on debt to fund its operations and growth, which could potentially improve its financial stability and solvency. It is important to continue monitoring the trend in the debt-to-equity ratio to assess the company's financial leverage and risk profile.