Zimmer Biomet Holdings Inc (ZBH)

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	4,867,900	5,152,200	5,463,700	7,626,500	6,721,400
Total stockholders’ equity	US$ in thousands	12,480,500	12,020,300	12,660,700	12,194,200	12,388,100
Debt-to-capital ratio		0.28	0.30	0.30	0.38	0.35

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,867,900K ÷ ($4,867,900K + $12,480,500K)
= 0.28

The debt-to-capital ratio of Zimmer Biomet Holdings Inc has shown a decreasing trend from 0.40 in 2019 and 2020 to 0.36 in 2021 and remained constant at 0.32 in both 2022 and 2023. This ratio indicates that the company relies on debt for approximately 32% to 40% of its capital structure over the past five years. A lower debt-to-capital ratio generally signifies a lower level of financial risk and a stronger equity base. Zimmer Biomet's consistent ratio in recent years suggests a stable leverage position, which may be viewed positively by investors and creditors. However, it is essential to monitor this ratio over time to assess any potential shifts in the company's capital structure and debt management practices.