EchoStar Corporation (SATS)
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 | 17,843,600 | 18,752,200 | 1,495,990 | 1,495,260 | 2,389,170 |
| Total stockholders’ equity | US$ in thousands | 19,880,200 | 21,487,600 | 3,353,830 | 3,542,330 | 3,669,800 |
| Debt-to-capital ratio | 0.47 | 0.47 | 0.31 | 0.30 | 0.39 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $17,843,600K ÷ ($17,843,600K + $19,880,200K)
= 0.47
The debt-to-capital ratio of EchoStar Corporation has shown a fluctuating trend over the past five years. In 2023 and 2022, the ratio remained constant at 0.47, indicating that approximately 47% of the company's capital structure was funded by debt. This level of leverage suggests a moderate reliance on debt financing.
In 2021 and 2020, the debt-to-capital ratio decreased to 0.31 and 0.30, respectively, signaling a lower proportion of debt in the capital structure. This may indicate a reduction in debt levels relative to total capital, potentially leading to improved financial health and lower financial risk.
However, in 2019, the ratio increased to 0.39, showing a higher reliance on debt compared to the previous two years. This could suggest increased debt financing for growth or investment opportunities during that period.
Overall, while the debt-to-capital ratio of EchoStar Corporation has varied over the years, it is essential to consider the company's overall financial strategy, profitability, and industry norms when assessing the implications of these changes.
Peer comparison
Dec 31, 2023