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.