Maximus Inc (MMS)

Debt-to-equity 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-equity ratio		0.59	0.61	0.63	0.71	0.70	0.75	0.75	0.94	0.83	0.94	0.89	0.99	0.97	1.12	0.18	0.01	0.01	0.12	0.13	0.00

September 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,091,950K ÷ $1,842,820K
= 0.59

The debt-to-equity ratio of Maximus Inc has fluctuated over the past few years. As of September 30, 2024, the ratio stands at 0.59, indicating that the company is financed with more equity than debt. This suggests a relatively lower financial risk compared to using high levels of debt for financing operations.

The trend of the debt-to-equity ratio shows variations, with some periods showing increases and others decreases. For example, there was a spike in the ratio to 1.12 on March 31, 2021, followed by a significant decrease to 0.18 on March 31, 2021. This fluctuation may indicate changes in the company's capital structure and financing decisions during these periods.

Overall, the decreasing trend in the debt-to-equity ratio from 0.99 on December 31, 2021, to 0.59 on September 30, 2024, suggests that Maximus Inc has been reducing its reliance on debt for funding its operations and moving towards a healthier balance between debt and equity financing. This trend could indicate improved financial stability and a better ability to weather economic uncertainties.