Arecor Therapeutics (LSE:AREC) Debt-to-Equity : 0.04 (As of Dec. 2023)

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What is Arecor Therapeutics Debt-to-Equity?

Arecor Therapeutics's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £0.12 Mil. Arecor Therapeutics's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £0.22 Mil. Arecor Therapeutics's Total Stockholders Equity for the quarter that ended in Dec. 2023 was £9.53 Mil. Arecor Therapeutics's debt to equity for the quarter that ended in Dec. 2023 was 0.04.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Arecor Therapeutics's Debt-to-Equity or its related term are showing as below:

LSE:AREC' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.01 Med: 0.05 Max: 2.58
Current: 0.04

During the past 7 years, the highest Debt-to-Equity Ratio of Arecor Therapeutics was 2.58. The lowest was 0.01. And the median was 0.05.

LSE:AREC's Debt-to-Equity is ranked better than
76.5% of 1081 companies
in the Biotechnology industry
Industry Median: 0.15 vs LSE:AREC: 0.04

Arecor Therapeutics Debt-to-Equity Historical Data

The historical data trend for Arecor Therapeutics's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Arecor Therapeutics Debt-to-Equity Chart

Arecor Therapeutics Annual Data

Trend

May17

May18

May19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

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0.05

2.58

0.01

0.02

0.04

Arecor Therapeutics Semi-Annual Data
	May18	May19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-Equity	Get a 7-Day Free Trial					0.01	0.01	0.02	0.01	0.04

Competitive Comparison of Arecor Therapeutics's Debt-to-Equity

For the Biotechnology subindustry, Arecor Therapeutics's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Arecor Therapeutics's Debt-to-Equity Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Arecor Therapeutics's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Arecor Therapeutics's Debt-to-Equity falls into.

Arecor Therapeutics Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Arecor Therapeutics's Debt to Equity Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(0.118	+	0.22)	/	9.527
	=	0.04

Arecor Therapeutics's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(0.118	+	0.22)	/	9.527
	=	0.04

Arecor Therapeutics (LSE:AREC) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Arecor Therapeutics Debt-to-Equity Related Terms

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Arecor Therapeutics (LSE:AREC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Arecor Therapeutics PLC (LSE:AREC) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

6UI:Germany

Address

Chesterford Research Park, Little Chesterford, Saffron Walden, GBR, CB10 1XL

Website

https://www.arecor.com

Arecor Therapeutics PLC is a focused biopharmaceutical company. The company is transforming patient care by bringing innovative medicines to market through the enhancement of existing therapeutic products. By applying an innovative proprietary formulation technology platform, Aresta. It is developing a portfolio of proprietary products in diabetes and other indications and working with pharmaceutical and biotechnology companies to deliver enhanced reformulations of their therapies. Geographically, it operates in the UK, Switzerland, the Rest of Europe, the USA, India, and the Rest of the World, out of which the majority is from the UK.