Waters Corporation (WAT)

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	2,305,510	1,524,880	1,513,870	1,206,520	1,580,800
Total stockholders’ equity	US$ in thousands	1,150,340	504,488	367,554	232,144	-216,281
Debt-to-capital ratio		0.67	0.75	0.80	0.84	1.16

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,305,510K ÷ ($2,305,510K + $1,150,340K)
= 0.67

The debt-to-capital ratio of Waters Corp. has shown a declining trend over the past five years, decreasing from 1.15 in 2019 to 0.67 in 2023. This indicates a positive development as the company has been gradually reducing its reliance on debt to finance its operations and growth.

A debt-to-capital ratio below 1 typically suggests that the company has more equity financing than debt financing, which could be viewed favorably by investors and creditors as it reflects a lower level of financial risk. In this case, Waters Corp. has been successful in shifting towards a more balanced capital structure.

The decreasing trend in the debt-to-capital ratio could mean that Waters Corp. has been effectively managing its debt levels while maintaining a strong capital position. This could potentially lead to improved financial stability and increased investor confidence in the company's ability to meet its financial obligations.

Overall, the declining debt-to-capital ratio of Waters Corp. signifies a positive financial trajectory, demonstrating prudent financial management and a decreasing reliance on debt financing.