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.
Peer comparison
Dec 31, 2023