Mettler-Toledo International Inc (MTD)

Debt-to-capital ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Long-term debt US$ in thousands 1,831,260 1,891,660 1,746,640 1,903,570 1,888,620 1,929,400 2,045,460 2,015,780 1,908,480 1,825,250 1,821,460 1,766,830 1,580,810 1,639,580 1,602,000 1,561,050 1,284,170 1,169,140 1,146,590 1,513,020
Total stockholders’ equity US$ in thousands -126,890 -154,353 -152,762 -158,717 -149,938 -105,872 -89,705 -24,469 24,793 -82,809 7,262 84,570 171,421 159,171 191,424 202,643 282,675 443,067 450,093 306,397
Debt-to-capital ratio 1.07 1.09 1.10 1.09 1.09 1.06 1.05 1.01 0.99 1.05 1.00 0.95 0.90 0.91 0.89 0.89 0.82 0.73 0.72 0.83

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,831,260K ÷ ($1,831,260K + $-126,890K)
= 1.07

The debt-to-capital ratio of Mettler-Toledo International Inc has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 0.83 in March 2020 and generally increased, reaching a peak of 1.10 in June 2024 before slightly decreasing to 1.07 by December 2024.

A debt-to-capital ratio of greater than 1 indicates that the company has more debt than capital, which might signal higher financial risk. It is essential to note that a high debt-to-capital ratio can sometimes be sustainable if the company effectively generates returns higher than the cost of debt. However, it also implies that the company may have limited financial flexibility and could face challenges in meeting debt obligations.

Overall, the increasing trend in Mettler-Toledo's debt-to-capital ratio over the analyzed period may raise concerns about the company's financial leverage and its ability to manage its debt effectively. Investors and stakeholders should closely monitor this ratio in conjunction with other financial metrics to assess the company's financial health and risk profile.