Merit Medical Systems Inc (MMSI)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,202,000	1,144,400	1,039,800	958,575	949,944
Debt-to-capital ratio		0.41	0.14	0.18	0.26	0.31

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $823,013K ÷ ($823,013K + $1,202,000K)
= 0.41

The debt-to-capital ratio for Merit Medical Systems, Inc. has exhibited fluctuations over the past five years, ranging from 0.41 in 2023 to 0.15 in 2022. This ratio indicates the proportion of the company's capital structure that is financed by debt. A higher debt-to-capital ratio implies a larger reliance on debt financing, which can increase financial risk.

The significant increase in the ratio from 0.15 in 2022 to 0.41 in 2023 suggests that Merit Medical Systems may have taken on more debt relative to its capital base in the latest year. This could potentially signal a shift towards more aggressive financing strategies or an increase in borrowing for expansion or other purposes.

It is important for investors and stakeholders to closely monitor changes in the debt-to-capital ratio as it can provide insights into the company's financial health, leverage levels, and risk profile. While debt can be used strategically to finance growth and operations, excessive debt levels may lead to financial difficulties, especially during challenging economic conditions.