Molina Healthcare Inc (MOH)
Debt-to-equity 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-equity ratio | 0.52 | 0.73 | 0.83 | 1.01 | 0.63 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,180,000K ÷ $4,215,000K
= 0.52
The debt-to-equity ratio of Molina Healthcare Inc has shown a decreasing trend over the past five years, indicating a positive development in the company's capital structure. In 2023, the ratio further improved to 0.57, reflecting a stronger position in terms of financial leverage compared to the previous years. The decline in the ratio suggests that Molina Healthcare has been reducing its reliance on debt financing in relation to equity, potentially reducing financial risk and enhancing shareholder value. This trend may indicate improved financial health and stability for the company, as lower debt levels relative to equity can provide a cushion against economic downturns and financial uncertainties. Overall, the decreasing debt-to-equity ratio for Molina Healthcare Inc signifies a positive shift towards a more balanced and sustainable capital structure.
Peer comparison
Dec 31, 2023