Sotera Health Co (SHC)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,223,670 | 2,222,790 | 2,221,990 | 2,222,330 | 1,747,120 | — | — | 1,744,540 | 1,743,530 | — | — | 1,837,580 |
| Total stockholders’ equity | US$ in thousands | 443,734 | 377,471 | 418,367 | 361,125 | 350,238 | 606,729 | 636,000 | 642,130 | 586,096 | 525,769 | 523,271 | 463,264 |
| Debt-to-capital ratio | 0.83 | 0.85 | 0.84 | 0.86 | 0.83 | 0.00 | 0.00 | 0.73 | 0.75 | 0.00 | 0.00 | 0.80 |
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 been relatively stable over the past eight quarters, ranging from 0.74 to 0.86. This ratio indicates that, on average, approximately 80% of the company's capital structure is funded by debt.
A ratio above 0.50 typically suggests that the company relies more on debt financing to fund its operations and growth. Sotera Health Co's ratios exceeding 0.80 indicate a significant reliance on debt capital, which may imply higher financial risk compared to companies with lower debt-to-capital ratios.
It is essential for investors and stakeholders to closely monitor this ratio over time, as an increasing trend could signal potential challenges in meeting debt obligations or managing financial leverage. Conversely, a decreasing trend may indicate efforts to reduce debt levels and improve overall financial stability.
Peer comparison
Dec 31, 2023