Masimo Corporation (MASI)

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	871,700	941,600	0	—	—
Total stockholders’ equity	US$ in thousands	1,364,800	1,338,900	1,550,200	1,407,640	1,167,870
Debt-to-capital ratio		0.39	0.41	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $871,700K ÷ ($871,700K + $1,364,800K)
= 0.39

The debt-to-capital ratio of Masimo Corporation has been fluctuating over the past five years. In 2023, the ratio stands at 0.39, a decrease from the previous year's 0.41. The company started 2021 with a debt-to-capital ratio of 0.00, which indicates either minimal or no debt in proportion to the capital structure. This implies the company had a debt-free capital structure in 2021. The consistency of zero debt-to-capital ratio in 2021, 2020, and 2019 suggests that Masimo Corporation maintained a strong financial position with little reliance on debt financing during those years. However, the increase in the ratio in 2022 and 2023 may signify a shift towards a slightly more leveraged capital structure. Further analysis would be beneficial to understand the reasons behind these changes and their potential implications for the company's financial health and risk profile.