Waters Corporation (WAT)

Debt-to-equity 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-equity ratio		2.00	3.02	4.12	5.20	—

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,305,510K ÷ $1,150,340K
= 2.00

The debt-to-equity ratio of Waters Corp. has shown a decreasing trend over the past five years, declining from 5.84 in 2020 to 2.05 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and has been increasing its equity portion in the capital structure. A lower debt-to-equity ratio is generally seen as a positive sign by investors and creditors as it signifies a lower level of financial risk and indicates better financial health. The company's downward trend in the debt-to-equity ratio suggests improved financial stability and a stronger ability to meet its debt obligations.