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.