Merit Medical Systems Inc (MMSI)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	823,013	186,759	234,397	343,722	431,984
Total assets	US$ in thousands	2,325,240	1,663,970	1,648,290	1,664,400	1,757,320
Debt-to-assets ratio		0.35	0.11	0.14	0.21	0.25

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $823,013K ÷ $2,325,240K
= 0.35

The debt-to-assets ratio of Merit Medical Systems, Inc. has shown fluctuations over the past five years. In 2023, the ratio increased to 0.35 from 0.12 in 2022, indicating that the company's reliance on debt to finance its assets has significantly increased. This may suggest higher financial leverage and risk, as a larger proportion of the company's assets are funded by debt.

Comparing 2023 to 2021, there is a notable increase from 0.15 to 0.35 in the debt-to-assets ratio. This indicates a substantial shift towards utilizing debt as a funding source for the company's assets. The higher ratio in 2023 compared to 2021 implies a greater financial risk associated with the company's capital structure.

Looking back further, the ratio has been on a general upward trend from 0.21 in 2020 to 0.25 in 2019, before experiencing a sharp increase in 2022 and 2023. It is essential for investors and stakeholders to closely monitor the debt-to-assets ratio of the company, as sustained high levels of debt relative to assets may indicate potential financial vulnerabilities and concerns about solvency and liquidity.