Option Care Health Inc (OPCH)
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 | 1,056,650 | 1,058,200 | 1,059,900 | 1,115,100 | 1,277,250 |
| Total stockholders’ equity | US$ in thousands | 1,421,670 | 1,386,100 | 1,175,890 | 1,015,720 | 906,827 |
| Debt-to-capital ratio | 0.43 | 0.43 | 0.47 | 0.52 | 0.58 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,056,650K ÷ ($1,056,650K + $1,421,670K)
= 0.43
The debt-to-capital ratio of Option Care Health Inc. has shown a declining trend from 0.59 in 2019 to 0.43 in 2023. This ratio indicates the proportion of the company's capital that is financed through debt. A lower debt-to-capital ratio signifies a lower reliance on debt financing, which can be viewed positively as it reduces financial risk and leverage. The consistent decrease in the ratio over the years suggests that Option Care Health Inc. has been actively reducing its debt levels relative to its total capital, which may enhance its financial stability and flexibility. It indicates that the company may have improved its financial position by either paying off debt or increasing its equity capital. This trend could be perceived favorably by investors and creditors as it shows prudent financial management and a stronger balance sheet position.
Peer comparison
Dec 31, 2023