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.