Select Medical Holdings (SEM)
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 | 1,288,300 | 1,121,920 | 1,109,980 | 1,060,480 | 770,972 |
| 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 + $1,288,300K)
= 0.00
The debt-to-capital ratio for Select Medical Holdings Corporation has shown a decreasing trend over the past five years, declining from 0.82 in 2019 to 0.74 in 2023. This indicates that the company has been able to lower its reliance on debt to finance its operations relative to its capital structure. A lower debt-to-capital ratio suggests a stronger financial position and reduced financial risk for the company. However, it is essential to continue monitoring this ratio to ensure that the company's debt levels remain sustainable and in line with its overall financial strategy.
Peer comparison
Dec 31, 2023