Sotera Health Co (SHC)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 443,734 | 350,238 | 586,096 |
| Debt-to-capital ratio | 0.83 | 0.83 | 0.75 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,223,670K ÷ ($2,223,670K + $443,734K)
= 0.83
The debt-to-capital ratio of Sotera Health Co has shown fluctuations over the past five years. In 2023, the ratio stands at 0.84, slightly lower compared to the previous year's ratio of 0.85. This indicates that the company's level of debt relative to its total capital has decreased, which may suggest a more conservative approach to financing its operations.
Looking further back, the ratio was at its lowest in 2021 at 0.75, which might suggest a reduction in the company's reliance on debt financing or an increase in its capital base during that period. However, the ratio increased to 0.80 in 2022 before slightly decreasing again in 2023.
In comparison, the debt-to-capital ratio was highest in 2019 at 1.29, indicating a higher proportion of debt in the company's capital structure at that time. The subsequent downward trend suggests a shift towards a more balanced mix of debt and equity in the company's capitalization in recent years.
Overall, tracking the debt-to-capital ratio provides insights into Sotera Health Co's capital structure and financing decisions, indicating changes in its debt levels relative to its total capital over the years.
Peer comparison
Dec 31, 2023