Zimmer Biomet Holdings Inc (ZBH)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	4,867,900	5,152,200	5,463,700	7,626,500	6,721,400
Total assets	US$ in thousands	21,496,900	21,066,000	23,456,400	24,417,700	24,638,700
Debt-to-assets ratio		0.23	0.24	0.23	0.31	0.27

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,867,900K ÷ $21,496,900K
= 0.23

The debt-to-assets ratio for Zimmer Biomet Holdings Inc has shown a consistent trend over the past five years. The ratio has remained relatively stable, ranging from 0.27 to 0.33 during this period.

A debt-to-assets ratio of 0.27 as of December 31, 2023, indicates that the company finances approximately 27% of its assets through debt, while the remaining 73% is funded by equity. This suggests that Zimmer Biomet Holdings Inc relies more on equity financing rather than debt to support its asset base.

The consistent nature of the ratio over the years may suggest that the company has maintained a prudent balance between debt and equity in its capital structure. However, it is important to note that a higher debt-to-assets ratio could indicate greater financial leverage and potential risk, while a lower ratio may imply a more conservative approach to financing.