Agilent Technologies Inc (A)
Debt-to-equity ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | 2,729,000 | 2,284,000 | 1,791,000 |
| Total stockholders’ equity | US$ in thousands | 5,845,000 | 5,305,000 | 5,389,000 | 4,873,000 | 4,748,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.51 | 0.47 | 0.38 |
October 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $5,845,000K
= 0.00
The debt-to-equity ratio measures the proportion of a company's financing that comes from debt versus equity. A lower ratio indicates a company is primarily financed through equity, whereas a higher ratio suggests a higher reliance on debt. Let's analyze Agilent Technologies Inc.'s debt-to-equity ratios over the past five years:
1. In 2023, the debt-to-equity ratio decreased to 0.47 from 0.52 in 2022, indicating a reduction in the company's reliance on debt financing compared to equity. This suggests a healthier balance between debt and equity.
2. The 2022 ratio of 0.52 suggests that for every dollar of equity, the company had $0.52 in debt. This indicates a moderate level of debt relative to equity, signaling a relatively stable financial structure.
3. In 2021, the ratio remained fairly consistent at 0.51, indicating a stable capital structure with a slightly higher proportion of debt compared to the previous year.
4. The ratio was 0.48 in 2020, showing a slight reduction from 0.51 in 2019. This suggests a decrease in the company's reliance on debt financing, potentially indicating improved financial strength.
5. In 2019, the ratio was also 0.51, indicating a stable capital structure with a relatively balanced mix of debt and equity.
Overall, Agilent Technologies Inc. has maintained a relatively consistent debt-to-equity ratio over the past five years, with a trend of slight fluctuations. The decreasing trend in recent years may suggest a conservative approach to managing debt and maintaining a healthy balance between debt and equity financing, contributing to the company's financial stability.
Peer comparison
Oct 31, 2023