Maximus Inc (MMS)

Debt-to-capital ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	1,091,950	1,100,700	1,121,340	1,222,240	1,163,150	1,223,130	1,205,030	1,486,980	1,292,480	1,423,280	1,387,390	1,515,090	1,429,140	1,633,140	250,601	18,481	18,017	145,161	150,155	—
Total stockholders’ equity	US$ in thousands	1,842,820	1,818,720	1,789,140	1,717,810	1,667,840	1,632,850	1,601,720	1,581,010	1,549,370	1,521,560	1,554,220	1,528,430	1,480,330	1,453,450	1,369,900	1,298,310	1,241,820	1,194,950	1,138,470	1,299,000
Debt-to-capital ratio		0.37	0.38	0.39	0.42	0.41	0.43	0.43	0.48	0.45	0.48	0.47	0.50	0.49	0.53	0.15	0.01	0.01	0.11	0.12	0.00

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

The debt-to-capital ratio of Maximus Inc has shown some fluctuation over the past few quarters. As of Sep 30, 2024, the ratio stands at 0.37, indicating that debt accounts for 37% of the company's capital structure. This ratio has decreased slightly from the previous quarter but remains relatively stable within the range of 0.37 to 0.42 over the past year.

The downward trend in the debt-to-capital ratio suggests that Maximus Inc may be reducing its reliance on debt financing and moving towards a more equity-based capital structure. A lower ratio generally indicates that the company is less leveraged and has a stronger financial position.

It is worth noting that the debt-to-capital ratio was significantly higher in the earlier quarters of 2021 and 2020, reaching values of 0.50 and 0.53, respectively. The sudden drop in the ratio in Mar 31, 2021, to 0.15 and further to 0.01 in the following quarters could be attributed to changes in the company's debt and equity levels.

Overall, the downward trend in Maximus Inc's debt-to-capital ratio reflects a potential shift towards a more conservative financing strategy and a stronger balance sheet position.