Regeneron Pharmaceuticals Inc (REGN)

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	1,982,900	1,981,400	1,980,000	1,978,500	0
Total stockholders’ equity	US$ in thousands	25,973,100	22,664,000	18,768,800	11,025,300	11,089,700
Debt-to-capital ratio		0.07	0.08	0.10	0.15	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,982,900K ÷ ($1,982,900K + $25,973,100K)
= 0.07

The debt-to-capital ratio of Regeneron Pharmaceuticals, Inc. has fluctuated over the past five years, ranging from 0.06 in 2019 to 0.20 in 2020. A lower ratio typically indicates a lower level of financial risk, as it suggests that the company relies less on debt financing compared to its equity. On the other hand, a higher ratio suggests a higher risk level, as the company may have a significant portion of debt in its capital structure.

In 2023, the debt-to-capital ratio improved to 0.09, indicating a lower reliance on debt financing compared to the previous year. This trend suggests that Regeneron Pharmaceuticals, Inc. may have managed its debt levels more effectively in the most recent year, which could be viewed positively by investors and creditors. However, it is important to consider the reasons behind this improvement and assess whether it is sustainable in the long run.

Overall, monitoring the debt-to-capital ratio provides valuable insights into the company's capital structure and financial risk profile, helping stakeholders assess the company's ability to meet its financial obligations and make informed investment decisions.