Merit Medical Systems Inc (MMSI)

Debt-to-equity 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-equity ratio		0.53	0.68	0.16	0.23	0.36

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $729,551K ÷ $1,379,360K
= 0.53

The debt-to-equity ratio of Merit Medical Systems Inc has shown fluctuations over the past five years. As of December 31, 2020, the ratio stood at 0.36, indicating a reasonable level of debt relative to equity. By December 31, 2021, the ratio had decreased to 0.23, suggesting a lower reliance on debt for financing. The trend continued into 2022, with the ratio falling further to 0.16, reflecting a more conservative capital structure.

However, a significant change was observed by December 31, 2023, where the ratio jumped to 0.68. This sharp increase may indicate a higher proportion of debt in relation to equity, potentially raising concerns about the company's leverage. Subsequently, by December 31, 2024, the ratio decreased to 0.53, showing some improvement but still remaining above the levels seen in the earlier years.

Overall, the fluctuating trend in Merit Medical Systems Inc's debt-to-equity ratio highlights the importance of monitoring the company's capital structure and debt management practices to ensure sustainable financial health.