Masimo Corporation (MASI)
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 | 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-equity ratio | 0.64 | 0.70 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $871,700K ÷ $1,364,800K
= 0.64
The debt-to-equity ratio for Masimo Corporation has shown a fluctuating trend over the past five years. In 2023, the ratio stands at 0.64, representing a decrease from the previous year's figure of 0.70. The significant change in the ratio from 0.00 in 2021 to positive values in the subsequent years indicates that the company has taken on some level of debt to finance its operations or growth initiatives. However, it is important to note that the ratio is still relatively moderate, indicating that Masimo Corporation's debt levels are not disproportionately high compared to its equity. This suggests a balanced approach to capital structure management, which could potentially mitigate financial risk while leveraging debt for strategic purposes. Further analysis of the company's debt maturity profile, interest coverage, and overall leverage would provide a more holistic view of its financial health and risk management strategies.
Peer comparison
Dec 31, 2023