Merit Medical Systems Inc (MMSI)

Debt-to-capital ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Long-term debt US$ in thousands 729,551 750,505 801,321 800,136 823,013 282,370 335,232 186,423 186,759 205,412 235,703 243,112 234,397 271,181 284,900 312,875 343,722 349,813 402,915 438,137
Total stockholders’ equity US$ in thousands 1,379,360 1,323,410 1,282,440 1,240,190 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
Debt-to-capital ratio 0.35 0.36 0.38 0.39 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

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 been showing a decreasing trend over the analyzed period, starting at 0.32 as of March 31, 2020, and gradually declining to 0.35 by December 31, 2024. This ratio indicates the proportion of the company's capital structure that is financed through debt.

A decreasing debt-to-capital ratio suggests that the company is reducing its reliance on debt to finance its operations and investments, which may indicate improved financial stability and risk management. However, a high level of debt can also be beneficial for companies looking to expand rapidly or take advantage of growth opportunities.

It is important to note that while a lower debt-to-capital ratio generally signifies a healthier financial position, it is essential to consider the specific industry norms and the company's overall financial strategy to assess the implications of this trend effectively.