Merit Medical Systems Inc (MMSI)
Debt-to-equity 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-equity ratio | 0.53 | 0.57 | 0.62 | 0.65 | 0.68 | 0.23 | 0.28 | 0.16 | 0.16 | 0.19 | 0.22 | 0.23 | 0.23 | 0.27 | 0.29 | 0.32 | 0.36 | 0.37 | 0.43 | 0.47 |
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 exhibited a declining trend over the past few years, indicating improved financial leverage and reduced reliance on debt financing. The ratio decreased from 0.47 as of March 31, 2020, to 0.53 as of December 31, 2024.
During this period, the company managed to lower its debt relative to equity, which is generally viewed positively by investors as it signifies a more conservative capital structure. It is worth noting that the ratio fluctuated between the range of 0.16 to 0.68 over the observed period, suggesting varying levels of debt and equity composition within the company's capital structure.
The lower debt-to-equity ratio implies that Merit Medical Systems Inc has a stronger equity base compared to its debt obligations, which may enhance its financial stability and reduce the risk of financial distress. However, the ratio rose towards the end of the period, possibly indicating an increase in debt levels relative to equity, which investors may want to monitor closely for potential implications on the company's financial health and risk profile.
Peer comparison
Dec 31, 2024