Merit Medical Systems Inc (MMSI)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	729,551	823,013	186,759	234,397	343,722
Total assets	US$ in thousands	2,418,600	2,325,240	1,663,970	1,648,290	1,664,400
Debt-to-assets ratio		0.30	0.35	0.11	0.14	0.21

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $729,551K ÷ $2,418,600K
= 0.30

The debt-to-assets ratio for Merit Medical Systems Inc has displayed fluctuating trends over the past five years. As of December 31, 2020, the ratio stood at 0.21, indicating that 21% of the company's assets were financed through debt. This ratio decreased to 0.14 by December 31, 2021, suggesting a more conservative debt financing approach.

Subsequently, by the end of 2022, the ratio further declined to 0.11, signaling a stronger financial position with a lower reliance on debt to fund its assets. However, by December 31, 2023, there was a noticeable increase in the debt-to-assets ratio to 0.35, which may indicate a potentially higher level of debt compared to assets, impacting the company's financial risk.

Despite this increase, the ratio decreased to 0.30 by December 31, 2024, although it remained above the levels seen in 2021 and 2022. Overall, the fluctuating pattern of the debt-to-assets ratio suggests varying levels of debt relative to assets over the years, highlighting the importance of monitoring the company's leverage and financial risk management strategies.