National HealthCare Corporation (NHC)
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 |
| Total stockholders’ equity | US$ in thousands | 908,752 | 874,276 | 903,004 | 795,177 | 778,593 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $908,752K)
= 0.00
The debt-to-capital ratio of National Healthcare Corp. has shown a decreasing trend over the past five years. The ratio declined from 0.04 in 2019 to 0.00 in 2023, indicating a significant reduction in the company's reliance on debt to finance its operations relative to its overall capital structure. This decline suggests that the company has been effectively managing its debt levels or increasing its equity funding. A lower debt-to-capital ratio generally indicates lower financial risk and a stronger balance sheet. The decreasing trend in the debt-to-capital ratio could be a positive sign for investors and creditors as it demonstrates improved financial stability and reduced vulnerability to potential financial distress.
Peer comparison
Dec 31, 2023