Waters Corporation (WAT)

Debt-to-equity 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 stockholders’ equity US$ in thousands 1,828,510 1,150,340 504,488 367,554 232,144
Debt-to-equity ratio 0.89 2.00 3.02 4.12 5.20

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,626,490K ÷ $1,828,510K
= 0.89

Based on the provided data, Waters Corporation has shown a decreasing trend in its debt-to-equity ratio over the years, indicating a reduction in the company's reliance on debt to finance its operations and investments.

As of December 31, 2020, the debt-to-equity ratio was relatively high at 5.20, suggesting a higher proportion of debt in the company's capital structure compared to equity. However, the ratio has been declining steadily since then. By December 31, 2024, the debt-to-equity ratio had dropped significantly to 0.89, signaling a healthier financial position with a greater emphasis on equity financing relative to debt.

Overall, the decreasing trend in the debt-to-equity ratio reflects Waters Corporation's efforts to strengthen its balance sheet and reduce financial risk by lowering its debt levels relative to equity. This could potentially improve the company's long-term financial stability and ability to weather economic uncertainties.