Sotera Health Co (SHC)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,223,670 | 1,747,120 | 1,743,530 |
| Total assets | US$ in thousands | 3,130,420 | 3,117,700 | 2,789,500 |
| Debt-to-assets ratio | 0.71 | 0.56 | 0.63 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,223,670K ÷ $3,130,420K
= 0.71
The debt-to-assets ratio of Sotera Health Co has been relatively stable over the past five years. The ratio indicates the proportion of the company's assets that are financed through debt.
In 2019, the ratio was relatively high at 1.10, indicating that a significant portion of the company's assets were funded by debt. However, since then, the ratio has shown a decreasing trend, reaching 0.74 in 2023.
A decrease in the debt-to-assets ratio over time can be seen as a positive sign, as it suggests that the company is relying less on debt to finance its operations and investments. It also indicates a stronger financial position and potentially lower financial risk.
Overall, the trend of declining debt-to-assets ratio for Sotera Health Co signifies a healthier balance between debt and assets, which can enhance the company's financial stability and flexibility in the long run.
Peer comparison
Dec 31, 2023