Regeneron Pharmaceuticals Inc (REGN)

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	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-equity ratio		0.08	0.09	0.11	0.18	0.00

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,982,900K ÷ $25,973,100K
= 0.08

Regeneron Pharmaceuticals, Inc.'s debt-to-equity ratio has exhibited some fluctuations over the past five years. The ratio decreased from 0.24 in 2020 to 0.06 in 2019, indicating a significant decrease in debt relative to equity in 2019. However, in the subsequent years, the ratio increased steadily, reaching 0.14 in 2021 and 0.12 in 2022 before slightly declining to 0.10 in 2023.

A debt-to-equity ratio of 0.10 in 2023 suggests that the company has a relatively low level of debt compared to its equity, indicating a conservative capital structure. This may indicate a lower financial risk for the company as lower debt levels typically imply lower interest expenses and lower default risk. It also suggests that the company may rely more on equity financing rather than debt to fund its operations and growth.

Overall, the decreasing trend of the debt-to-equity ratio from 2021 to 2023 could be perceived positively by stakeholders, as it indicates a potential improvement in the company's financial leverage and stability. However, it is essential to monitor this ratio closely in future periods to assess any significant shifts in the company's capital structure and financial risk profile.