Owens & Minor Inc (OMI)
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 | — | — | — | 986,018 | 1,508,420 |
| Total stockholders’ equity | US$ in thousands | 924,166 | 945,604 | 938,501 | 712,054 | 462,154 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.58 | 0.77 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $924,166K)
= 0.00
Owens & Minor, Inc.'s debt-to-capital ratio has exhibited fluctuations over the past five years. The ratio was at its highest in 2019 at 0.77, indicating that a significant portion of the company's capital structure was financed by debt. This could imply higher financial risk due to increased leverage.
In 2021, the ratio decreased to 0.50, suggesting a more conservative approach to debt utilization and a higher proportion of capital being funded by equity. This could indicate a stronger financial position and lower risk compared to the previous year.
However, in 2022, the ratio increased to 0.72, indicating a reversal in the trend towards a higher reliance on debt financing. This might signal a shift in the company's capital structure towards more debt, potentially increasing financial risk.
By the end of 2023, the debt-to-capital ratio decreased slightly to 0.69, suggesting a move towards a more balanced mix of debt and equity in the capital structure. This could reflect management's efforts to optimize the company's financing structure for sustainable growth and profitability.
Overall, fluctuations in Owens & Minor, Inc.'s debt-to-capital ratio indicate varying levels of leverage and financial risk over the years, highlighting the importance of monitoring and managing the company's capital structure effectively.
Peer comparison
Dec 31, 2023