National HealthCare Corporation (NHC)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $908,752K
= 0.00
The debt-to-equity ratio of National Healthcare Corp. has shown a declining trend over the past five years, indicating a strengthening financial position in terms of capital structure. The ratio decreased from 0.04 in 2019 to 0.00 in 2023, reflecting a significant reduction in the proportion of debt relative to equity in the company's capital mix. This suggests that the company may be relying more on equity financing compared to debt financing, which can be seen as a positive sign for investors and creditors as it implies lower financial risk and potentially greater financial stability. Additionally, the decreasing trend in the debt-to-equity ratio indicates improved financial leverage and a healthier balance sheet, potentially enhancing the company's ability to support its operations and pursue growth opportunities.
Peer comparison
Dec 31, 2023