Pacira Pharmaceuticals Inc (PCRX)

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	513,796	655,823	674,530	313,030	306,045
Total stockholders’ equity	US$ in thousands	870,130	775,010	730,408	619,688	354,944
Debt-to-equity ratio		0.59	0.85	0.92	0.51	0.86

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $513,796K ÷ $870,130K
= 0.59

The debt-to-equity ratio of Pacira BioSciences Inc has shown fluctuations over the past five years, ranging from 0.60 to 1.44. A lower debt-to-equity ratio indicates a lower level of financial risk as it suggests that the company relies less on debt financing and has a stronger equity position.

In 2023, the debt-to-equity ratio decreased to 0.60 from 0.89 in 2022, indicating a reduction in the company's reliance on debt to fund its operations. This decrease may be viewed positively by investors and creditors as it reflects a potentially healthier balance sheet and reduced financial risk. It suggests the company has a more conservative capital structure in the most recent year.

However, it is worth noting that the debt-to-equity ratio was significantly higher in 2021 at 1.44 compared to the previous years. A high debt-to-equity ratio can indicate higher financial leverage and risk, as the company may be more vulnerable to economic downturns or rising interest rates.

Overall, the trend in Pacira BioSciences' debt-to-equity ratio indicates some variability in the company's capital structure over the years. Investors and stakeholders should continue to monitor this ratio to assess the company's financial health and risk profile.