IPG Photonics Corporation (IPGP)

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 — 0 16,031 34,157 37,968
Total stockholders’ equity US$ in thousands 2,415,380 2,385,360 2,746,580 2,592,820 2,401,730
Debt-to-capital ratio 0.00 0.00 0.01 0.01 0.02

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,415,380K)
= 0.00

The debt-to-capital ratio of IPG Photonics Corp has been consistently low over the past five years, ranging from 0.00 to 0.02. This indicates that the company has been maintaining a conservative approach towards financing its operations using debt. A low debt-to-capital ratio signifies a lower level of financial risk and a greater financial stability for the company. IPG Photonics Corp's ability to keep its debt-to-capital ratio at a low level suggests that it relies more on equity financing rather than debt, which may indicate a strong financial position. Overall, the trend in the debt-to-capital ratio of IPG Photonics Corp reflects a prudent financial management strategy.