Waters Corporation (WAT)

Debt-to-equity 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-equity ratio		2.00	2.71	3.35	2.38	3.02	3.88	3.66	3.85	4.12	5.47	5.98	6.94	5.20	—	—	—	—	10.87	1.88	1.08

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 displayed fluctuations over the past eight quarters, ranging from a low of 2.05 in Q4 2023 to a high of 4.01 in Q3 2022. The trend shows an overall increase in the ratio until Q3 2022, followed by a decline in Q4 2022, and then a mixture of increases and decreases in subsequent quarters.

A debt-to-equity ratio above 1 indicates that the company has more debt than equity in its capital structure. Waters Corp. has maintained a ratio consistently above 1 in all periods, indicating a significant reliance on debt financing. The higher the ratio, the greater the financial risk, as higher debt levels can lead to increased interest payments and financial instability during economic downturns.

Comparing the latest quarter (Q4 2023) to the previous quarters, we observe a decrease in the debt-to-equity ratio. This may suggest a reduction in the company's debt levels relative to its equity, potentially indicating a move towards a more conservative capital structure or improved financial health. However, further analysis of the company's financial statements and overall financial position is recommended to fully assess the implications of these changes in the debt-to-equity ratio.