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.
Peer comparison
Dec 31, 2023