IPG Photonics Corporation (IPGP)

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	—	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-equity ratio		0.00	0.00	0.01	0.01	0.02

December 31, 2023 calculation

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

The debt-to-equity ratio of IPG Photonics Corp has been consistently low over the past five years, indicating a conservative approach to financing its operations.

The ratio has decreased from 0.02 in 2019 to 0.01 in 2020, and has remained at 0.01 from 2021 to 2023. This trend suggests that the company relies more on equity financing rather than debt to fund its activities.

A debt-to-equity ratio of 0.01 means that for every $1 of debt, the company has $100 of equity, reflecting a strong financial position with minimal reliance on borrowed funds. This low ratio signifies low financial risk and indicates that the company has a stable capital structure.

Overall, the consistent low debt-to-equity ratio of IPG Photonics Corp implies a cautious and sustainable approach to managing its capital and indicates a strong financial foundation.