Molina Healthcare Inc (MOH)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	2,180,000	2,176,000	2,173,000	2,127,000	1,237,000
Total stockholders’ equity	US$ in thousands	4,215,000	2,964,000	2,630,000	2,096,000	1,960,000
Debt-to-capital ratio		0.34	0.42	0.45	0.50	0.39

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,180,000K ÷ ($2,180,000K + $4,215,000K)
= 0.34

Molina Healthcare Inc's debt-to-capital ratio has exhibited a declining trend over the past five years, from 0.43 in 2019 to 0.36 in 2023. This indicates that the company's reliance on debt in its capital structure has decreased over time. A lower debt-to-capital ratio suggests that the company has a stronger financial position and may be less risky for investors and creditors.

The decreasing trend in the debt-to-capital ratio could be a result of Molina Healthcare Inc's efforts to manage its debt levels effectively, potentially by reducing debt or increasing capital through equity financing. This trend may have positive implications for the company's creditworthiness and financial stability in the long run.

It is important to note that while a declining debt-to-capital ratio generally indicates improved financial health, it is essential to consider other financial metrics and factors impacting the company's overall performance and profitability for a comprehensive analysis of its financial position.