Select Medical Holdings (SEM)
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 | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,288,300 | 1,121,920 | 1,109,980 | 1,060,480 | 770,972 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,288,300K
= 0.00
The debt-to-equity ratio of Select Medical Holdings Corporation has shown fluctuations over the past five years. The ratio decreased from 4.47 in 2019 to 3.21 in 2020 before increasing to 3.26 in 2021, then further to 3.49 in 2022, and finally to 2.86 in 2023.
A decreasing trend in the debt-to-equity ratio indicates that the company is relying less on debt funding relative to equity over time, which could be considered a positive sign of financial stability. However, it is essential to note that a debt-to-equity ratio of 2.86 in 2023 still indicates that there is a significant reliance on debt financing within Select Medical Holdings Corporation compared to equity.
Overall, the decreasing trend in the debt-to-equity ratio in recent years may suggest that the company is managing its debt levels more effectively, potentially reducing financial risk and improving its long-term financial health.
Peer comparison
Dec 31, 2023