IPG Photonics Corporation (IPGP)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 0 | 16,031 | 34,157 | 37,968 |
| Total assets | US$ in thousands | 2,698,900 | 2,743,280 | 3,170,540 | 2,935,700 | 2,730,440 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.01 | 0.01 | 0.01 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $2,698,900K
= 0.00
The debt-to-assets ratio of IPG Photonics Corp has shown a consistent pattern of low levels of debt relative to its total assets over the last five years. The ratio decreased from 0.02 in 2019 to 0.01 in 2020 and has remained at 0.01 in the subsequent years. This indicates that the company has a very low proportion of debt in relation to its total assets, suggesting a conservative approach to leverage.
A debt-to-assets ratio of 0.01 or 1% implies that only 1% of IPG Photonics Corp's total assets are financed by debt, with the remaining 99% funded by equity. This signifies that the company relies more on equity capital to finance its operations and growth, which can be seen as a positive indicator of financial stability and solvency.
Overall, based on the consistently low debt-to-assets ratio observed in the financial data provided, IPG Photonics Corp appears to have a strong financial position with a low level of leverage, indicating a reduced risk of financial distress and a solid foundation for continued long-term growth and profitability.
Peer comparison
Dec 31, 2023