Sotera Health Co (SHC)
Debt-to-equity 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-equity ratio | 5.01 | 5.89 | 5.31 | 6.15 | 4.99 | 0.00 | 0.00 | 2.72 | 2.97 | 0.00 | 0.00 | 3.97 |
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 previous quarters.
In Q4 2023, the ratio stood at 5.19, marking a decrease from Q3 2023's 6.09. Despite the reduction, the company still has a relatively high level of debt compared to equity.
Looking back at Q2 and Q1 2023, the ratio was 5.49 and 6.36 respectively, indicating an upward trend in leverage during that period.
Comparing the most recent data to a year ago, Q4 2022 had a ratio of 5.72, suggesting that the company's debt levels have remained relatively stable over the course of the year.
In the previous year, the ratios were notably lower, with Q3 and Q2 2022 standing at 2.97 and 2.84 respectively, and Q1 2022 at 2.78. This indicates a significant increase in leverage over the past year.
Overall, the trend in Sotera Health Co's debt-to-equity ratio suggests that the company has been increasing its reliance on debt financing relative to equity, which could lead to higher financial risk and interest expenses.
Peer comparison
Dec 31, 2023