Zimmer Biomet Holdings Inc (ZBH)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	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	12,388,100	12,081,500	11,659,100	11,534,400
Debt-to-capital ratio		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	0.35	0.34	0.37	0.42

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 for Zimmer Biomet Holdings Inc has remained relatively stable over the past eight quarters, hovering around the range of 0.30 to 0.34. This indicates that the company's debt level as a proportion of its total capital has been consistently moderate, with debt accounting for approximately 30% to 34% of the company's total capital structure.

A debt-to-capital ratio of 0.32 in Q4 2023 suggests that the company continues to maintain a relatively conservative approach to its capital structure, with a balance between debt and equity financing. It is essential to monitor this ratio over time to assess any significant changes in the company's financial leverage and risk profile.