Option Care Health Inc (OPCH)
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 | 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-equity ratio | 0.74 | 0.76 | 0.90 | 1.10 | 1.41 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,056,650K ÷ $1,421,670K
= 0.74
Option Care Health Inc.'s debt-to-equity ratio has shown a decreasing trend over the past five years. The ratio decreased from 1.42 in 2019 to 0.75 in 2023. This indicates that the company has been relying less on debt financing relative to equity financing over the period, which may imply a lower financial risk and better financial health.
A high debt-to-equity ratio could indicate a higher level of financial risk, as it suggests a significant reliance on debt to finance operations and investments. Conversely, a lower ratio may signal a more conservative approach to capital structure management.
It is worth noting that the company has successfully reduced its debt relative to equity, which could be seen as a positive trend in terms of financial stability and risk management. Further analysis of the company's overall financial position and performance would be needed to provide a more comprehensive assessment of its debt management strategy.
Peer comparison
Dec 31, 2023