Dentsply Sirona Inc (XRAY)
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 | 1,796,000 | 1,826,000 | 1,913,000 | 1,978,000 | 1,433,000 |
| Total stockholders’ equity | US$ in thousands | 3,293,000 | 3,811,000 | 4,996,000 | 4,932,000 | 5,093,000 |
| Debt-to-capital ratio | 0.35 | 0.32 | 0.28 | 0.29 | 0.22 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,796,000K ÷ ($1,796,000K + $3,293,000K)
= 0.35
The debt-to-capital ratio of DENTSPLY Sirona Inc has been gradually increasing over the past five years, indicating a rising level of debt relative to the company's capital structure. In 2019, the ratio was at a relatively low level of 0.22, but it has since increased to 0.39 by the end of 2023.
This trend suggests that the company has been relying more on debt financing as a source of capital compared to equity. A higher debt-to-capital ratio can indicate increased financial risk, as higher debt levels may lead to higher interest payments and potential challenges in servicing debt obligations, especially during economic downturns.
It is important for investors and stakeholders to closely monitor this trend in the debt-to-capital ratio, as it can provide insights into the company's overall financial health and risk profile. Additionally, management should consider optimizing the company's capital structure to maintain a healthy balance between debt and equity financing in order to support sustainable growth and financial stability.
Peer comparison
Dec 31, 2023