Pacs(Pacs) Financials: Debt To Equity Compared To Industry Average, Plus Other Key Ratios
Solvency Trend (Last 5 Years)
Solvency - debt to equity
This chart shows the historical trend of debt to equity for PACS compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Debt to Equity
Definition: Debt to equity shows how much debt the company uses compared to the amount invested by its owners. It’s a bit like comparing your mortgage to your house down payment. Higher ratios suggest the business is comfortable borrowing to grow — which can boost returns in good times, but adds risk if conditions worsen. Lower ratios signal a more conservative, steady approach.
Interpretation:
• In '2022', PACS's debt to equity was 30.25, showing the balance between debt financing and shareholders' equity. Industry average for Hospital/Nursing Management in '2022' stood at 0.99.
• In '2023', PACS's debt to equity was 29.18, showing the balance between debt financing and shareholders' equity. The decrease since '2022' reflects improving financial health. Industry average for Hospital/Nursing Management in '2023' stood at 0.10. Industry average declined by 0.90 from previous year.
Overall, PACS's debt to equity has consistently declined during the past 2 years.
Formula: Debt to Equity = Total Debt / Shareholders' Equity
Good Range: Below 1.0 is conservative; 1-2 is common depending on industry.