Waters Corporation (WAT)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	1,626,490	2,305,510	1,524,880	1,513,870	1,206,520
Total assets	US$ in thousands	4,553,800	4,626,850	3,281,450	3,094,930	2,839,920
Debt-to-assets ratio		0.36	0.50	0.46	0.49	0.42

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,626,490K ÷ $4,553,800K
= 0.36

The debt-to-assets ratio for Waters Corporation has shown some fluctuations over the past five years. The ratio was at 0.42 as of December 31, 2020, indicating that 42% of the company's assets were financed by debt. Over the subsequent years, the ratio increased to 0.49 by December 31, 2021, 0.46 by December 31, 2022, and then peaked at 0.50 by December 31, 2023, suggesting a higher reliance on debt to fund assets.

However, by December 31, 2024, the debt-to-assets ratio decreased to 0.36, signaling a lower proportion of debt used to finance the company's assets compared to the previous year. It is important to note that a lower debt-to-assets ratio can indicate a stronger financial position and lower financial risk for the company, as it implies a higher proportion of assets are funded by equity rather than debt. Overall, monitoring the trend of the debt-to-assets ratio is crucial to assessing Waters Corporation's leverage and financial stability.