R1 RCM Inc (RCM)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,570,500 | 1,646,000 | — | 1,707,000 | 1,732,600 | 1,728,100 | 1,749,200 |
| Total stockholders’ equity | US$ in thousands | 2,751,400 | 2,743,400 | 2,725,000 | 2,702,700 | 2,702,500 | 2,749,200 | 2,733,600 |
| Debt-to-equity ratio | 0.57 | 0.60 | 0.00 | 0.63 | 0.64 | 0.63 | 0.64 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,570,500K ÷ $2,751,400K
= 0.57
The debt-to-equity ratio of R1 RCM Inc. has exhibited some fluctuations over the past eight quarters. The ratio decreased from 0.66 in Q4 2022 to 0.60 in Q4 2023, indicating a reduction in the company's reliance on debt compared to equity for financing its operations.
However, it's worth noting that the ratio increased gradually from Q4 2022 to Q1 2023, reaching 0.65 in Q1 2023. This suggests a temporary shift towards higher debt levels relative to equity during that period. Subsequently, there was a slight decline in the ratio in Q2 and Q3 2023, before increasing again to 0.62 in Q3 2023.
Overall, the debt-to-equity ratio has ranged between 0.60 and 0.66 over the past year, indicating a moderate level of leverage in the company's capital structure. The spike to 2.10 in Q1 2022 appears to be an anomaly or a one-time event that does not reflect the company's usual financing pattern.
Further analysis of the reasons behind these changes in the debt-to-equity ratio, such as changes in debt levels, equity investments, or profitability, would be necessary to provide a more in-depth understanding of R1 RCM Inc.'s financial position and leverage strategy.
Peer comparison
Dec 31, 2023