Molina Healthcare Inc (MOH)

Debt-to-equity ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	2,180,000	2,179,000	2,178,000	2,177,000	2,176,000	2,175,000	2,175,000	2,174,000	2,173,000	2,130,000	2,129,000	2,128,000	2,127,000	1,813,000	1,812,000	1,596,000	1,237,000	1,239,000	1,241,000	1,121,000
Total stockholders’ equity	US$ in thousands	4,215,000	3,879,000	3,621,000	3,288,000	2,964,000	3,041,000	2,830,000	2,794,000	2,630,000	2,518,000	2,370,000	2,164,000	2,096,000	2,201,000	1,996,000	1,647,000	1,960,000	1,831,000	1,736,000	1,835,000
Debt-to-equity ratio		0.52	0.56	0.60	0.66	0.73	0.72	0.77	0.78	0.83	0.85	0.90	0.98	1.01	0.82	0.91	0.97	0.63	0.68	0.71	0.61

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 been gradually decreasing over the past eight quarters, indicating a favorable trend in the company's capital structure. The ratio has decreased from 0.86 in Q1 2022 to 0.57 in Q4 2023. This signifies that the company has been reducing its reliance on debt funding in relation to shareholders' equity over this period.

A lower debt-to-equity ratio generally indicates lower financial risk and a stronger financial position. Molina Healthcare's decreasing ratio suggests that the company is becoming less leveraged and potentially more financially stable. Investors and creditors may view this trend positively as it implies a reduced risk of insolvency and better financial health for the company.

Overall, the declining trend in Molina Healthcare's debt-to-equity ratio reflects a potentially improved financial position and prudent capital management by the company over the analyzed period.