Stericycle Inc (SRCL)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,310,000 | 1,400,000 | 1,630,000 | 1,860,000 | 2,730,000 |
| Total stockholders’ equity | US$ in thousands | 2,522,500 | 2,420,200 | 2,398,700 | 2,430,100 | 2,330,900 |
| Debt-to-capital ratio | 0.34 | 0.37 | 0.40 | 0.43 | 0.54 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,310,000K ÷ ($1,310,000K + $2,522,500K)
= 0.34
The debt-to-capital ratio for Stericycle Inc. has shown a decreasing trend over the past five years, indicating an improved financial position in terms of its leverage. As of December 31, 2023, the ratio stands at 0.34, which means that 34% of the company's capital structure is comprised of debt, while the remaining 66% is from equity. This suggests that Stericycle relies more on equity financing rather than debt which could be viewed positively by investors and creditors.
Furthermore, the decreasing trend in the debt-to-capital ratio from 0.53 in 2019 to 0.34 in 2023 indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments. This could signify a prudent financial management strategy aimed at reducing financial risk and improving overall solvency.
Overall, the decreasing debt-to-capital ratio for Stericycle Inc. reflects a positive trend towards a more balanced and sustainable capital structure, potentially enhancing the company's financial stability and attractiveness to investors.
Peer comparison
Dec 31, 2023