Merit Medical Systems Inc (MMSI)

Debt-to-assets ratio

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	823,013	282,370	335,232	186,423	186,759	205,412	235,703	243,112	234,397	271,181	284,900	312,875	343,722	349,813	402,915	438,137	431,984	432,456	385,221	362,187
Total assets	US$ in thousands	2,325,240	1,808,500	1,837,570	1,684,110	1,663,970	1,632,740	1,631,520	1,629,740	1,648,290	1,643,170	1,642,390	1,651,720	1,664,400	1,670,510	1,715,870	1,749,270	1,757,320	1,761,700	1,736,270	1,689,790
Debt-to-assets ratio		0.35	0.16	0.18	0.11	0.11	0.13	0.14	0.15	0.14	0.17	0.17	0.19	0.21	0.21	0.23	0.25	0.25	0.25	0.22	0.21

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 some fluctuation over the past eight quarters. In Q4 2023, the ratio stood at 0.35, which indicates that 35% of the company's assets were financed by debt. This represents a significant increase compared to the previous quarter, where the ratio was 0.16.

The trend observed in the debt-to-assets ratio indicates that the company has been relying more on debt to finance its operations and growth in the most recent quarter, which could potentially lead to higher financial leverage and risk. It is important to note that a higher debt-to-assets ratio implies a greater reliance on debt financing, which can increase financial risk and reduce financial flexibility.

Further analysis over time reveals that the debt-to-assets ratio has varied between 0.12 and 0.35 in the past eight quarters, indicating some level of stability overall. However, the recent spike in the ratio in Q4 2023 warrants closer attention to ensure that the company's debt levels are sustainable and in line with its overall financial strategy and risk tolerance. Overall, a comprehensive assessment of Merit Medical Systems, Inc.'s debt-to-assets ratio suggests a potentially increased reliance on debt financing in the most recent quarter, which could impact the company's financial health and stability.