Vicor Corporation (VICR)
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 | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 540,869 | 464,088 | 423,599 | 350,820 | 205,562 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $540,869K)
= 0.00
The debt-to-capital ratio of Vicor Corp. has remained consistently at 0.00 for the past five years, indicating that the company has not relied on debt to finance its operations during this period. This suggests that Vicor Corp. has been funding its activities primarily through equity or other non-debt sources.
A debt-to-capital ratio of 0.00 implies that the company's total debt is negligible compared to its total capital, which includes both debt and equity. This low ratio reflects a strong financial position with minimal financial risk due to the absence of debt obligations.
However, while a low debt-to-capital ratio can be indicative of financial strength and stability, it may also suggest that the company is not taking advantage of leverage to potentially enhance returns. It is essential for investors and stakeholders to consider the reasons behind Vicor Corp.'s consistent 0.00 debt-to-capital ratio in their assessment of the company's overall financial health and strategy.
Peer comparison
Dec 31, 2023