Zimmer Biomet Holdings Inc (ZBH)

Debt-to-assets 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	4,867,900	5,127,400	5,189,400	5,204,800	5,152,200	5,055,200	5,172,000	5,286,300	5,463,700	6,458,100	6,802,500	7,538,700	7,626,500	7,840,200	7,759,300	7,724,200	6,721,400	6,345,900	6,719,300	8,310,600
Total assets	US$ in thousands	21,496,900	21,217,300	21,294,300	21,243,500	21,066,000	21,333,300	21,452,700	21,617,500	23,456,400	24,008,600	24,223,200	24,026,600	24,417,700	24,025,500	23,647,600	25,512,900	24,638,700	24,315,200	24,205,700	24,289,000
Debt-to-assets ratio		0.23	0.24	0.24	0.25	0.24	0.24	0.24	0.24	0.23	0.27	0.28	0.31	0.31	0.33	0.33	0.30	0.27	0.26	0.28	0.34

December 31, 2023 calculation

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

Zimmer Biomet Holdings Inc's debt-to-assets ratio has been relatively stable over the past eight quarters, ranging between 0.26 and 0.29. The ratio indicates that the company finances approximately 26% to 29% of its total assets through debt, with the remaining funded by equity. A lower debt-to-assets ratio generally reflects lower financial risk, as it suggests that the company has a lower reliance on debt to finance its operations and investments. In Zimmer Biomet's case, the consistent ratio around 0.27 to 0.28 indicates a moderate level of leverage, which may be considered reasonable for a company in the healthcare industry with stable cash flows and strong profitability. However, it is essential to monitor any significant fluctuations in the ratio over time to assess changes in the company's financial risk profile and capital structure.