Stericycle Inc (SRCL)
Debt-to-equity 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-equity ratio | 0.52 | 0.58 | 0.68 | 0.77 | 1.17 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,310,000K ÷ $2,522,500K
= 0.52
The debt-to-equity ratio of Stericycle Inc. has displayed a downward trend over the past five years, indicating a decreasing reliance on debt to finance its operations relative to shareholder equity. This trend suggests that the company is gradually reducing its debt levels and/or increasing its equity base.
As of December 31, 2023, the debt-to-equity ratio stands at 0.51, signaling a relatively conservative capital structure with a higher proportion of equity compared to debt. This could indicate lower financial risk and potentially more financial stability for the company.
The decreasing trend in the debt-to-equity ratio from 1.14 in 2019 to 0.51 in 2023 implies that Stericycle Inc. may have implemented strategies to reduce debt and strengthen its financial position in recent years. Overall, a lower debt-to-equity ratio is often viewed positively by investors as it indicates a healthier balance sheet and lower leverage risk.
Peer comparison
Dec 31, 2023