OSI Systems Inc (OSIS)

Debt-to-capital ratio

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Long-term debt	US$ in thousands	129,383	131,214	132,792	134,746	136,491	138,190	140,057	143,150	48,668	48,708	602	692	276,421	273,997	271,667	269,356	267,072	264,777	262,326	260,007
Total stockholders’ equity	US$ in thousands	863,483	813,413	770,443	724,457	726,165	666,917	647,754	624,653	638,424	618,494	620,148	623,312	639,820	615,893	587,636	557,540	572,152	552,276	557,716	541,564
Debt-to-capital ratio		0.13	0.14	0.15	0.16	0.16	0.17	0.18	0.19	0.07	0.07	0.00	0.00	0.30	0.31	0.32	0.33	0.32	0.32	0.32	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 few quarters, ranging from 0.00 to 0.33. The ratio increased steadily from 0.00 in the first quarter of 2022 to a peak of 0.33 in the third quarter of 2020. However, it then decreased to 0.07 in the second quarter of 2022 before fluctuating between 0.07 and 0.19 in subsequent quarters.

The company's debt-to-capital ratio was relatively stable at lower levels before a significant increase starting from the fourth quarter of 2022. This upward trend indicates a larger proportion of debt in the company's capital structure compared to equity. Investors and creditors may interpret the rise in the ratio as a sign of increased leverage and potential financial risk for the company.

It is essential for stakeholders to closely monitor further changes in OSI Systems Inc's debt-to-capital ratio to assess the company's capital structure and financial health effectively. Additional analysis and context about the company's overall financial performance and debt management strategies would provide a more comprehensive understanding of the implications of the observed trends in the debt-to-capital ratio.