Protagonist Therapeutics Inc (PTGX)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	336,677	215,608	300,021	279,606	79,964
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $336,677K)
= 0.00

The debt-to-capital ratio of Protagonist Therapeutics Inc has consistently remained at 0.00 over the past five years, indicating that the company has not utilized debt financing in relation to its capital structure during this period. This implies that the company relies more on equity financing rather than debt to support its operations and growth. A debt-to-capital ratio of 0.00 signifies that the company's capital structure is debt-free, which can be considered a positive attribute as it reduces the financial risk associated with debt obligations. However, it is important to note that a low debt-to-capital ratio may also suggest potential limitations in leveraging opportunities that could enhance shareholder returns in the long run. It would be beneficial for Protagonist Therapeutics Inc to evaluate the optimal mix of debt and equity in its capital structure to maximize profitability while effectively managing financial risk.