Aecom Technology Corporation (ACM)
Debt-to-capital ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,212,330 | 2,476,650 | 2,712,470 | 3,292,560 | 3,690,580 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,212,330K)
= 0.00
The debt-to-capital ratio of AECOM has experienced fluctuations over the past five years. In 2023, the ratio stands at 0.50, indicating that 50% of the company's capital is financed through debt. This represents an increase from the previous year when the ratio was 0.47. In 2021 and 2020, the ratio was 0.45 and 0.39, respectively, indicating a relatively lower level of debt financing. However, in 2019, the ratio was higher at 0.48.
The increase in the debt-to-capital ratio from 2022 to 2023 suggests a higher reliance on debt to finance the company's operations and investments. It is important to note that a higher debt-to-capital ratio may indicate increased financial risk and potential constraints on future growth due to higher interest obligations. However, it can also reflect the company's confidence in its ability to generate returns that exceed the cost of debt.
Overall, the trend in AECOM's debt-to-capital ratio suggests fluctuating levels of debt financing over the past five years, which should be monitored to assess the company's overall financial stability and risk management.
Peer comparison
Sep 30, 2023