Teleflex Incorporated (TFX)

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 1,727,570 1,624,020 1,740,100 2,377,890 1,858,940
Total stockholders’ equity US$ in thousands 4,440,990 4,021,970 3,754,750 3,336,460 2,979,320
Debt-to-capital ratio 0.28 0.29 0.32 0.42 0.38

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,727,570K ÷ ($1,727,570K + $4,440,990K)
= 0.28

The debt-to-capital ratio of Teleflex Incorporated has exhibited a decreasing trend over the past five years, indicating a consistent improvement in the company's ability to finance its operations through a mix of debt and equity. As of December 31, 2023, the debt-to-capital ratio stands at 0.29, marking a decrease from 0.30 in 2022. This suggests that Teleflex is relying less on debt and more on equity to fund its operations and investments, which could signify a stronger financial position and lower financial risk. The downward trend in the debt-to-capital ratio may reflect improved financial stability, better access to capital markets, or effective debt management strategies by the company's management. Overall, the decreasing debt-to-capital ratio bodes well for Teleflex's financial health and indicates a prudent approach to capital structure management.