Zimmer Biomet Holdings Inc (ZBH)

Debt-to-equity 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-equity ratio		0.39	0.41	0.42	0.43	0.43	0.41	0.43	0.44	0.43	0.51	0.54	0.61	0.63	0.66	0.67	0.65	0.54	0.53	0.58	0.72

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 relative stability over the past eight quarters, ranging between 0.44 to 0.52. The ratio indicates that the company is financing a significant portion of its operations through debt in relation to equity. A ratio below 1.0 typically signifies that the company has more equity than debt, which can be viewed as a positive indicator of financial health. Zimmer Biomet's ratio has stayed below this threshold, suggesting a relatively conservative capital structure. However, the slight increase in the ratio from Q3 2023 to Q4 2023 may indicate an uptick in the level of debt relative to equity, which could be worth monitoring for potential future implications on the company's financial position and risk profile.