Merit Medical Systems Inc (MMSI)

Debt-to-capital 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 stockholders’ equity US$ in thousands 1,379,360 1,202,000 1,144,400 1,039,800 958,575
Debt-to-capital ratio 0.35 0.41 0.14 0.18 0.26

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $729,551K ÷ ($729,551K + $1,379,360K)
= 0.35

The debt-to-capital ratio of Merit Medical Systems Inc has shown fluctuations over the years based on the provided data. As of December 31, 2020, the ratio was 0.26, indicating that 26% of the company's capital structure was funded by debt. Subsequently, the ratio decreased to 0.18 by the end of December 31, 2021, implying a lower reliance on debt financing.

By December 31, 2022, the debt-to-capital ratio further decreased to 0.14, reflecting a trend of reducing debt compared to the overall capital employed. However, there was a noticeable increase in the ratio to 0.41 by December 31, 2023, suggesting a significant rise in debt levels relative to the company's overall capital structure.

As of December 31, 2024, the debt-to-capital ratio decreased to 0.35, indicating a slight reduction in debt as a proportion of total capital compared to the previous year. Overall, these fluctuations in the debt-to-capital ratio reflect Merit Medical Systems Inc's changing capital structure and its varying reliance on debt financing over the analyzed period. It would be important to further investigate the reasons behind these changes and assess the implications for the company's financial position and risk profile.