United Therapeutics Corporation (UTHR)
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 | 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-equity ratio | 0.05 | 0.17 | 0.20 | 0.24 | 0.22 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $300,000K ÷ $5,984,800K
= 0.05
The debt-to-equity ratio of United Therapeutics Corp has shown a decreasing trend over the past five years, highlighting the company's efforts in reducing its reliance on debt financing in relation to shareholders' equity. A lower debt-to-equity ratio indicates a stronger financial position and lower financial risk as the company is using less debt to fund its operations and growth initiatives.
In 2023, the debt-to-equity ratio stood at 0.12, marking a significant improvement from the previous year's ratio of 0.17. This suggests that the company has successfully decreased its debt levels or increased its equity position, resulting in a more favorable balance between debt and equity funding.
Comparing the 2023 ratio to earlier years, the company has made consistent progress in reducing its debt relative to equity. This trend reflects positively on United Therapeutics Corp's financial stability and ability to manage its capital structure efficiently.
Overall, the decreasing trend in the debt-to-equity ratio for United Therapeutics Corp indicates a prudent financial strategy and a healthy balance sheet position, which can enhance the company's overall financial performance and sustainability in the long term.
Peer comparison
Dec 31, 2023