Waters Corporation (WAT)

Debt-to-capital 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	2,305,510	2,455,260	2,580,200	1,430,130	1,524,880	1,494,630	1,434,370	1,444,120	1,513,870	1,613,620	1,603,370	1,603,090	1,206,520	1,421,340	1,546,160	1,845,980	1,580,800	1,255,600	1,048,390	1,048,280
Total stockholders’ equity	US$ in thousands	1,150,340	905,522	771,229	599,823	504,488	385,236	392,124	374,937	367,554	295,222	268,273	230,962	232,144	-41,581	-191,742	-337,999	-216,281	115,500	556,245	967,742
Debt-to-capital ratio		0.67	0.73	0.77	0.70	0.75	0.80	0.79	0.79	0.80	0.85	0.86	0.87	0.84	1.03	1.14	1.22	1.16	0.92	0.65	0.52

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 for Waters Corp. has exhibited some fluctuations over the past eight quarters, ranging from 0.67 to 0.80. A lower debt-to-capital ratio indicates that the company relies less on debt financing and has a higher proportion of capital provided by equity. Conversely, a higher ratio suggests increased reliance on debt to finance its operations and investments.

In the most recent quarter, Q4 2023, the debt-to-capital ratio decreased to 0.67 from 0.73 in the previous quarter, Q3 2023. This could indicate that Waters Corp. reduced its debt levels relative to its total capital, which may be viewed positively by investors and creditors.

However, it is important to note that the debt-to-capital ratio fluctuated in the intermediate quarters, reaching a peak of 0.80 in Q3 2022. This could imply that the company took on more debt during that period, possibly to fund expansion or other strategic initiatives.

Overall, a declining trend in the debt-to-capital ratio over the quarters may suggest that Waters Corp. is managing its debt levels effectively and optimizing its capital structure. It is crucial for investors and stakeholders to monitor this ratio continuously to assess the company's financial health and risk profile.