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.
Peer comparison
Dec 31, 2023