Sotera Health Co (SHC)
Debt-to-equity 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-equity ratio | 5.01 | 4.99 | 2.97 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,223,670K ÷ $443,734K
= 5.01
The debt-to-equity ratio of Sotera Health Co has shown fluctuations over the past five years, ranging from 3.05 to 5.72. In 2023, the ratio stood at 5.19, indicating that the company's level of debt was more than five times higher than its equity. This suggests a relatively high reliance on debt financing in the capital structure. Comparing this to the prior years, we observe an increasing trend from 2021 to 2022 before a slight decrease in 2023. It is worth noting that the debt-to-equity ratio for 2019 is not available in the data provided. Overall, a high debt-to-equity ratio may indicate higher financial risk and leverage for the company, which investors and creditors should consider when assessing the company's financial health and stability.
Peer comparison
Dec 31, 2023