Mettler-Toledo International Inc (MTD)

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	1,888,620	1,908,480	1,580,810	1,284,170	1,235,350
Total stockholders’ equity	US$ in thousands	-149,938	24,793	171,421	282,675	420,780
Debt-to-capital ratio		1.09	0.99	0.90	0.82	0.75

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,888,620K ÷ ($1,888,620K + $-149,938K)
= 1.09

The debt-to-capital ratio for Mettler-Toledo International, Inc. has been gradually increasing over the past five years, indicating a rising level of financial leverage. The ratio stood at 0.75 as of December 31, 2019, and has increased consistently year over year, reaching 1.08 as of December 31, 2023.

This upward trend suggests that the company is relying more on debt financing relative to its total capital structure. While leverage can amplify returns on equity in times of growth, it also increases the company's financial risk, as higher debt levels lead to higher interest payments and potential liquidity challenges in economic downturns.

It is important for investors and stakeholders to closely monitor the debt-to-capital ratio of Mettler-Toledo International, Inc. to assess the company's ability to meet its debt obligations and sustain its financial health in the long term. A higher debt-to-capital ratio may indicate increased financial risk, which could impact the company's creditworthiness and overall stability.