Neurocrine Biosciences Inc (NBIX)

Debt-to-capital 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	—	—	—	169,500	0	0	169,000	377,700	335,100	330,700	326,300	322,000	317,900	425,000	419,500	414,100	408,807	403,589	398,466	393,435
Total stockholders’ equity	US$ in thousands	2,232,000	2,002,100	1,853,000	1,684,500	1,707,800	1,544,600	1,423,400	1,391,100	1,374,000	1,346,000	1,279,200	1,205,600	1,126,200	804,300	831,200	700,300	636,900	574,500	483,700	409,300
Debt-to-capital ratio		0.00	0.00	0.00	0.09	0.00	0.00	0.11	0.21	0.20	0.20	0.20	0.21	0.22	0.35	0.34	0.37	0.39	0.41	0.45	0.49

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 for Neurocrine Biosciences, Inc. has been relatively stable over the past eight quarters, ranging from 0.07 to 0.21. A lower debt-to-capital ratio indicates that the company relies less on debt financing compared to its capital structure.

The decreasing trend from Q1 2022 to Q4 2023 suggests that the company has been gradually reducing its reliance on debt to finance its operations and investments. This can be seen as a positive sign as it indicates improved financial stability and lower financial risk.

It is important to consider that an extremely low debt-to-capital ratio might also indicate underutilization of debt as a cheaper source of financing. Conversely, a high debt-to-capital ratio can indicate high financial risk. Therefore, a moderate level of debt-to-capital ratio is generally considered healthy for a company's financial structure.

Overall, based on the trend observed in the debt-to-capital ratio over the past eight quarters, Neurocrine Biosciences, Inc. seems to be managing its debt levels effectively and maintaining a balanced capital structure.