Aecom Technology Corporation (ACM)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
September 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,212,330K
= 0.00
The debt-to-equity ratio is a key financial metric that provides insights into a company's capital structure and financial leverage. A higher ratio indicates higher levels of debt relative to equity, which may signify greater financial risk, while a lower ratio suggests a more conservative and stable capital structure. Let's analyze AECOM's debt-to-equity ratio over the past five years:
1. Sep 30, 2023: The debt-to-equity ratio stands at 1.00. This indicates that the company has an equal amount of debt and equity, suggesting a balanced capital structure. However, it also suggests a significant reliance on debt financing, which may raise concerns about the company's financial risk.
2. Sep 30, 2022: The ratio has decreased to 0.89 from the previous year. This indicates a slight improvement in the company's capital structure as the reliance on debt has reduced. It suggests a more conservative approach to financing, potentially lowering financial risk.
3. Sep 30, 2021: The ratio further decreased to 0.82, reflecting a continued trend of decreasing reliance on debt financing and a strengthening equity position. This indicates a more conservative capital structure.
4. Sep 30, 2020: The ratio was at 0.63, signaling a significant decrease in the reliance on debt financing compared to the previous year. This suggests a conservative and stable capital structure, potentially reducing financial risk.
5. Sep 30, 2019: The ratio increased to 0.92 from the previous year. This indicates a higher reliance on debt compared to the previous year, potentially increasing the financial risk for the company.
Overall, AECOM's debt-to-equity ratio has fluctuated over the years, reflecting changes in the company's capital structure and financial leverage. The trend of decreasing ratios from 2019 to 2021 suggests a more conservative approach to financing and a potential reduction in financial risk, while the increase in 2023 signifies a higher reliance on debt financing and potentially higher financial risk.
Peer comparison
Sep 30, 2023