Neurocrine Biosciences Inc (NBIX)

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	—	0	335,100	317,900	408,807
Total stockholders’ equity	US$ in thousands	2,232,000	1,707,800	1,374,000	1,126,200	636,900
Debt-to-capital ratio		0.00	0.00	0.20	0.22	0.39

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,232,000K)
= 0.00

The debt-to-capital ratio of Neurocrine Biosciences, Inc. has exhibited a declining trend over the past five years, decreasing from 0.39 in 2019 to 0.07 in 2023. This indicates a significant improvement in the company's ability to finance its operations through a combination of debt and equity.

A lower debt-to-capital ratio suggests that Neurocrine Biosciences is relying more on equity financing rather than debt to fund its operations and growth. This could be viewed positively by investors and creditors as it may signify lower financial risk and less dependency on external borrowing.

The decreasing trend in the debt-to-capital ratio could be attributed to various factors such as efficient management of debt levels, improved profitability, increased equity financing, or debt repayments. It indicates a stronger financial position and may reflect positively on the company's creditworthiness and overall financial health.

Overall, the declining debt-to-capital ratio of Neurocrine Biosciences, Inc. suggests a more conservative capital structure and a reduced reliance on debt, which may contribute to the company's long-term financial stability and sustainability.