Molina Healthcare Inc (MOH)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	2,923,000	2,180,000	2,176,000	2,173,000	2,127,000
Total stockholders’ equity	US$ in thousands	4,496,000	4,215,000	2,964,000	2,630,000	2,096,000
Debt-to-capital ratio		0.39	0.34	0.42	0.45	0.50

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,923,000K ÷ ($2,923,000K + $4,496,000K)
= 0.39

The debt-to-capital ratio for Molina Healthcare Inc has shown a decreasing trend over the past five years, declining from 0.50 as of December 31, 2020, to 0.39 as of December 31, 2024. This indicates that the company has been reducing its reliance on debt financing and improving its capital structure over the period. A lower debt-to-capital ratio is generally seen as a positive sign, as it suggests a lower level of financial risk and greater financial stability for the company. This trend may reflect Molina Healthcare's efforts to manage its debt levels prudently and optimize its capital mix to support sustainable growth and profitability.