Varex Imaging Corp (VREX)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 567,700 | 533,400 | 483,300 | 451,700 | 444,900 |
| Debt-to-capital ratio | 0.44 | 0.44 | 0.47 | 0.50 | 0.45 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $441,100K ÷ ($441,100K + $567,700K)
= 0.44
The debt-to-capital ratio of Varex Imaging Corp has shown a fluctuating trend over the past five years, ranging from 0.44 to 0.50. The ratio indicates the proportion of a company's capital that is financed by debt. A decreasing ratio over time suggests a reduction in debt relative to its capital base, reflecting a potentially lower financial risk and dependency on debt financing. Conversely, an increasing ratio could indicate a higher reliance on debt to fund operations and investments. Therefore, Varex Imaging Corp's debt-to-capital ratio movement should be monitored closely to assess its financial leverage and risk profile.
Peer comparison
Sep 30, 2023