Pacira Pharmaceuticals Inc (PCRX)

Debt-to-capital ratio

		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	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	513,796	515,941	532,183	542,918	655,823	713,999	721,878	729,743	674,530	326,146	321,708	317,338	313,030	456,464	314,182	310,078	306,045	302,081	298,185	294,356
Total stockholders’ equity	US$ in thousands	870,130	831,551	807,975	768,041	775,010	770,123	756,636	709,576	730,408	718,602	687,168	650,818	619,688	584,690	388,148	374,036	354,944	346,162	341,650	327,519
Debt-to-capital ratio		0.37	0.38	0.40	0.41	0.46	0.48	0.49	0.51	0.48	0.31	0.32	0.33	0.34	0.44	0.45	0.45	0.46	0.47	0.47	0.47

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $513,796K ÷ ($513,796K + $870,130K)
= 0.37

The debt-to-capital ratio of Pacira BioSciences Inc has been fluctuating over the past eight quarters, indicating the company's changing level of debt compared to its total capital. The ratio has generally been on a decreasing trend from Q1 2022 to Q4 2023, suggesting a potential improvement in the company's debt management and capital structure.

The ratio stood at its highest of 0.57 in Q1 2022, indicating that 57% of the company's capital was financed by debt at that time. Subsequently, the ratio gradually decreased to 0.38 in Q4 2023, demonstrating that only 38% of the company's capital was debt-funded in the most recent quarter.

This declining trend signifies that Pacira BioSciences Inc may have been reducing its reliance on debt as a source of capital over the quarters, which could be viewed positively by investors and creditors. However, it is essential to consider other financial metrics and industry benchmarks to gain a holistic understanding of the company's overall financial health and leverage position.