Maximus Inc (MMS)

Debt-to-capital ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	1,091,950	1,163,150	1,292,480	1,429,140	18,017
Total stockholders’ equity	US$ in thousands	1,842,820	1,667,840	1,549,370	1,480,330	1,241,820
Debt-to-capital ratio		0.37	0.41	0.45	0.49	0.01

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,091,950K ÷ ($1,091,950K + $1,842,820K)
= 0.37

Maximus Inc's debt-to-capital ratio has exhibited a declining trend over the past five years, indicating a decreasing reliance on debt financing relative to the company's total capital structure. The ratio stood at 0.37 as of September 30, 2024, down from 0.41 in the previous year and significantly lower than the ratio of 0.01 recorded in September 2020.

This downward trend suggests that Maximus Inc has been effectively managing its debt levels in relation to its total capital, potentially reducing financial risk and enhancing financial stability. A declining debt-to-capital ratio could also indicate improved financial health and operational efficiency as the company relies less on debt to fund its operations and investments.

It is important for investors and stakeholders to monitor this ratio over time to assess the company's financial leverage and risk exposure. A lower debt-to-capital ratio may indicate a stronger financial position, but it is also crucial to evaluate the company's ability to generate sufficient returns to support its capital structure and debt obligations.