United Therapeutics Corporation (UTHR)

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	300,000	800,000	800,000	800,000	600,000
Total stockholders’ equity	US$ in thousands	5,984,800	4,796,700	3,958,900	3,395,200	2,780,400
Debt-to-capital ratio		0.05	0.14	0.17	0.19	0.18

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $300,000K ÷ ($300,000K + $5,984,800K)
= 0.05

United Therapeutics Corp's debt-to-capital ratio has been progressively improving over the past five years, decreasing from 0.23 in 2019 to 0.10 in 2023. This indicates that the company has been reducing its reliance on debt relative to its total capital. A lower debt-to-capital ratio suggests a stronger financial position and lower financial risk for the company. The trend of decreasing debt-to-capital ratio implies that United Therapeutics Corp has been effectively managing its capital structure by either reducing its debt levels or increasing its equity base. This trend can be seen as a positive sign for investors and creditors as it reflects improved financial stability and flexibility for the company.