IPG Photonics Corporation (IPGP)

Debt-to-equity ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	—	—	—	15,734	0	0	0	15,734	16,031	16,328	32,225	33,193	34,157	35,117	36,071	37,022	37,968	38,909	39,846	40,779
Total stockholders’ equity	US$ in thousands	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	2,401,730	2,380,110	2,366,650	2,267,840
Debt-to-equity ratio		0.00	0.00	0.00	0.01	0.00	0.00	0.00	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.02	0.02	0.02	0.02	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 very low, ranging from 0.00 to 0.01 over the past eight quarters. This indicates that the company has been employing a conservative capital structure with a relatively low level of debt in comparison to its equity. A low debt-to-equity ratio is generally seen as a positive financial indicator, suggesting that the company is at a lower risk of financial distress and may have greater financial flexibility. However, it is important to consider that a very low debt-to-equity ratio may also imply missed opportunities for leveraging debt to fund growth or maximize returns for shareholders. Overall, IPG Photonics Corp's stable and low debt-to-equity ratio reflects a cautious approach to financial leverage.