Zimmer Biomet Holdings Inc (ZBH)

Debt-to-capital ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Long-term debt US$ in thousands 5,341,600 4,737,700 3,956,700 4,826,200 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
Total stockholders’ equity US$ in thousands 12,468,100 12,374,700 12,741,100 12,598,000 12,480,500 12,510,800 12,371,500 12,150,700 12,020,300 12,244,700 12,118,400 12,015,500 12,660,700 12,708,600 12,577,900 12,445,000 12,194,200 11,872,200 11,641,400 11,878,600
Debt-to-capital ratio 0.30 0.28 0.24 0.28 0.28 0.29 0.30 0.30 0.30 0.29 0.30 0.31 0.30 0.34 0.35 0.38 0.38 0.40 0.40 0.39

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,341,600K ÷ ($5,341,600K + $12,468,100K)
= 0.30

The debt-to-capital ratio of Zimmer Biomet Holdings Inc has shown a decreasing trend over the past few years, indicating a reduction in the company's reliance on debt financing relative to its total capital. As of December 31, 2024, the debt-to-capital ratio stood at 0.30, suggesting that 30% of the company's capital structure is funded by debt. This ratio has gradually decreased from 0.39 as of March 31, 2020, to its current level, reflecting a potentially stronger financial position and a lower risk profile for the company. A decreasing debt-to-capital ratio generally signifies improved financial health and stability, as it indicates a lower proportion of debt in the company's capital stack. It is essential for investors and stakeholders to monitor this ratio to assess the company's ability to meet its debt obligations and manage its overall capital structure effectively.