Merit Medical Systems Inc (MMSI)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,202,000	1,229,880	1,203,700	1,171,660	1,144,400	1,088,840	1,073,310	1,056,520	1,039,800	1,013,380	992,434	976,692	958,575	933,837	928,847	939,798	949,944	949,241	950,675	940,111
Debt-to-capital ratio		0.41	0.19	0.22	0.14	0.14	0.16	0.18	0.19	0.18	0.21	0.22	0.24	0.26	0.27	0.30	0.32	0.31	0.31	0.29	0.28

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 varied over the past eight quarters. In Q4 2023, the ratio stood at 0.41, which indicates that debt represented 41% of the company's total capital. This level of leverage is relatively high compared to the previous quarters, where the ratio ranged from 0.14 to 0.22.

The increasing trend in the debt-to-capital ratio since Q1 2023 suggests that the company has been relying more on debt to finance its operations or growth initiatives. This could imply increased financial risk for the company as higher debt levels typically lead to higher interest payments and financial obligations.

It is important for stakeholders to closely monitor this trend and assess the company's ability to manage its debt effectively to ensure sustainable growth and profitability. A higher debt-to-capital ratio may indicate a higher financial leverage and potential challenges in meeting debt obligations in the future.