IPG Photonics Corporation (IPGP)
Debt-to-equity ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,024,470 | 2,114,610 | 2,253,370 | 2,340,720 | 2,415,380 | 2,383,950 | 2,398,550 | 2,338,520 | 2,385,360 | 2,580,510 | 2,639,220 | 2,707,250 | 2,746,580 | 2,739,350 | 2,704,920 | 2,639,500 | 2,592,820 | 2,470,210 | 2,436,350 | 2,355,070 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,024,470K
= 0.00
The debt-to-equity ratio for IPG Photonics Corporation has consistently been at 0.00% from March 31, 2020, to December 31, 2024. This ratio indicates that the company has not utilized any debt in its capital structure during this period and is solely financed by equity. A debt-to-equity ratio of 0.00 signifies a very low level of financial risk as there is no debt to repay, implying that the company's financial position is stable and it does not rely on borrowed funds to operate or expand its business.
The absence of debt in the company's capital structure can be seen as a positive sign by investors and creditors, as it implies that IPG Photonics Corporation has not taken on excessive financial leverage which could potentially increase its financial vulnerability. However, it is also important to note that having a debt-to-equity ratio of 0.00% may limit the company's financial flexibility in terms of leveraging debt for potential growth opportunities or tax benefits.
In conclusion, the consistent 0.00% debt-to-equity ratio for IPG Photonics Corporation suggests a conservative financial management approach with a focus on maintaining a strong equity base and minimal financial risk.
Peer comparison
Dec 31, 2024