Zimmer Biomet Holdings Inc (ZBH)

Debt-to-equity 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-equity ratio		0.39	0.43	0.43	0.63	0.54

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,867,900K ÷ $12,480,500K
= 0.39

The debt-to-equity ratio of Zimmer Biomet Holdings Inc has shown a decreasing trend over the past five years. The ratio decreased from 0.66 in 2019 to 0.46 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments relative to its equity. A lower debt-to-equity ratio typically suggests that the company has a stronger financial position and may be less risky for investors. It appears that Zimmer Biomet Holdings Inc has been managing its capital structure effectively by decreasing the proportion of debt in relation to equity over the years. This trend is generally viewed positively by investors and creditors as it may signify improved financial health and stability for the company.