Envista Holdings Corp (NVST)
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 | 1,398,100 | 870,700 | 883,400 | 907,700 | 1,321,000 |
| Total stockholders’ equity | US$ in thousands | 4,173,900 | 4,206,900 | 4,057,600 | 3,720,600 | 3,540,200 |
| Debt-to-capital ratio | 0.25 | 0.17 | 0.18 | 0.20 | 0.27 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,398,100K ÷ ($1,398,100K + $4,173,900K)
= 0.25
The debt-to-capital ratio of Envista Holdings Corp has shown some fluctuations over the past five years. The ratio was 0.27 at the end of 2023, slightly higher than the prior year but still within a reasonable range. It indicates that approximately 27% of the company's capital is financed through debt, with the remaining 73% coming from equity.
Comparing this to previous years, we see that the ratio was relatively stable around 0.25 to 0.27 from 2019 to 2023, with a slight increase in 2020 to 0.33. This increase in 2020 suggests a higher reliance on debt financing that year, which may have been influenced by various factors such as economic conditions or strategic decisions by the company.
Overall, Envista Holdings Corp's debt-to-capital ratio has generally been in line with industry norms, indicating a balanced capital structure with a reasonable level of debt relative to equity. However, it would be advisable to keep monitoring this ratio to ensure the company's financial stability and risk management strategies are maintained effectively.
Peer comparison
Dec 31, 2023