Varex Imaging Corp (VREX)
Debt-to-assets ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 441,100 | 412,300 | 431,700 | 452,800 | 364,400 |
| Total assets | US$ in thousands | 1,249,600 | 1,184,400 | 1,147,500 | 1,139,500 | 1,038,900 |
| Debt-to-assets ratio | 0.35 | 0.35 | 0.38 | 0.40 | 0.35 |
September 30, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $441,100K ÷ $1,249,600K
= 0.35
The debt-to-assets ratio for Varex Imaging Corp has been relatively stable over the past five years, ranging from 0.35 to 0.40. This ratio indicates that, on average, the company has funded 35% to 40% of its total assets through debt financing.
A lower debt-to-assets ratio suggests that the company relies less on debt to finance its operations and growth, which can be viewed positively by investors and creditors due to lower financial risk.
Overall, the consistency of Varex Imaging Corp's debt-to-assets ratio suggests a prudent approach to managing debt levels, maintaining a healthy balance between debt and assets to support sustainable business operations and growth.
Peer comparison
Sep 30, 2023