US Physicalrapy Inc (USPH)
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 | 138,991 | 175,831 | 117,587 | 16,596 | 50,361 |
| Total stockholders’ equity | US$ in thousands | 476,194 | 315,793 | 295,606 | 276,160 | 240,257 |
| Debt-to-capital ratio | 0.23 | 0.36 | 0.28 | 0.06 | 0.17 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $138,991K ÷ ($138,991K + $476,194K)
= 0.23
The debt-to-capital ratio of U.S. Physical Therapy, Inc. has fluctuated over the past five years. In 2023, the ratio stood at 0.24, indicating that 24% of the company's capital structure was funded by debt. This represents a decrease from the previous year when the ratio was 0.37. The company's debt-to-capital ratio was relatively stable in 2021 at 0.29 but rose significantly in 2020 to 0.07 before increasing again in 2019 to 0.18.
The decreasing trend from 2022 to 2023 could suggest that the company is reducing its reliance on debt to finance its operations or investments. However, it is important to note that the debt-to-capital ratio is relatively low overall, indicating that U.S. Physical Therapy, Inc. has a conservative capital structure with a higher proportion of equity compared to debt.
Investors and stakeholders may view the low debt-to-capital ratio positively as it indicates lower financial risk and less dependence on borrowed funds. Additionally, a conservative capital structure can provide a buffer against economic downturns or unforeseen circumstances that may impact the company's ability to meet its debt obligations.
Peer comparison
Dec 31, 2023