Varex Imaging Corp (VREX)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 441,400 | 441,100 | 441,100 | 441,000 | 440,800 | 412,300 | 410,100 | 408,400 | 433,700 | 431,700 | 429,800 | 458,000 | 457,500 | 452,800 | 389,500 | 352,800 | 350,900 | 364,400 | 379,400 | 316,700 |
| Total stockholders’ equity | US$ in thousands | 568,900 | 567,700 | 531,500 | 519,600 | 511,700 | 533,400 | 514,800 | 501,100 | 492,800 | 483,300 | 471,500 | 454,700 | 450,200 | 451,700 | 467,100 | 451,100 | 447,900 | 444,900 | 434,400 | 433,300 |
| Debt-to-equity ratio | 0.78 | 0.78 | 0.83 | 0.85 | 0.86 | 0.77 | 0.80 | 0.82 | 0.88 | 0.89 | 0.91 | 1.01 | 1.02 | 1.00 | 0.83 | 0.78 | 0.78 | 0.82 | 0.87 | 0.73 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $441,400K ÷ $568,900K
= 0.78
The debt-to-equity ratio for Varex Imaging Corp has shown fluctuations over the past few quarters. The ratio was relatively stable between 0.77 and 0.88 from December 2019 to December 2021. However, a notable increase in the ratio was observed from March 2022 onwards, reaching a peak of 1.02 in December 2022.
This increase indicates that the company's level of debt in relation to its equity has been growing, which could suggest a higher reliance on debt financing compared to equity. It is worth noting that a high debt-to-equity ratio may indicate higher financial risk and potential issues with debt repayment obligations.
Subsequently, the ratio started to decline, reaching 0.78 as of December 2023, a level similar to that seen at the end of 2019. This reduction in the ratio may indicate an effort by the company to reduce its debt levels relative to equity, possibly through debt repayments or increased equity financing.
Overall, monitoring Varex Imaging Corp's debt-to-equity ratio trend is crucial for assessing its leverage position and financial risk management strategies.
Peer comparison
Dec 31, 2023