Veeco Instruments Inc (VECO)
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 | 274,941 | 254,491 | 229,438 | 321,115 | 300,068 |
| Total stockholders’ equity | US$ in thousands | 672,442 | 577,824 | 437,628 | 408,374 | 374,512 |
| Debt-to-capital ratio | 0.29 | 0.31 | 0.34 | 0.44 | 0.44 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $274,941K ÷ ($274,941K + $672,442K)
= 0.29
The debt-to-capital ratio of Veeco Instruments Inc has been showing a decreasing trend over the past five years. In 2019 and 2020, the ratio remained stable at 0.44, indicating that 44% of the company's capital was financed by debt.
However, there has been a noticeable decline in the ratio in subsequent years, reaching 0.29 by the end of 2023. This reduction suggests that Veeco Instruments Inc has been decreasing its reliance on debt financing compared to equity financing.
A lower debt-to-capital ratio indicates a lower financial risk for the company, as it is less dependent on borrowed funds. This trend may be viewed positively by investors and creditors, as it demonstrates improved financial health and stability. Veeco Instruments Inc's decreasing debt-to-capital ratio over the years may be a reflection of effective financial management and a prudent approach to capital structure.
Peer comparison
Dec 31, 2023