OSI Systems Inc (OSIS)

Debt-to-capital ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	129,383	136,491	48,668	276,421	267,072
Total stockholders’ equity	US$ in thousands	863,483	726,165	638,424	639,820	572,152
Debt-to-capital ratio		0.13	0.16	0.07	0.30	0.32

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $129,383K ÷ ($129,383K + $863,483K)
= 0.13

The debt-to-capital ratio of OSI Systems Inc has exhibited fluctuations over the past five years. In the most recent period ending June 30, 2024, the company's debt-to-capital ratio stands at 0.13. This indicates that the company's total debt accounts for 13% of its total capital, which is considered relatively low.

Comparing this to the previous year, there has been an improvement from 0.16 to 0.13, suggesting a reduction in the proportion of debt in relation to the company's total capital. Similarly, the debt-to-capital ratio was at 0.07 in 2022, demonstrating the lowest level of debt relative to capital over the five-year period.

In contrast, there was a significant increase in the debt-to-capital ratio in 2021 and 2020, where the ratios were 0.30 and 0.32, respectively. This indicates a higher reliance on debt funding compared to capital during those periods.

Overall, the trend in OSI Systems Inc's debt-to-capital ratio suggests that the company has made efforts to reduce its debt burden in recent years, which may indicate a more conservative approach to financing and improved financial stability.