Apogee Enterprises Inc (APOG)
Debt-to-capital ratio
| Mar 2, 2024 | Feb 25, 2023 | Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 62,000 | 169,837 | 162,000 | 163,000 | 212,500 |
| Total stockholders’ equity | US$ in thousands | 471,025 | 396,408 | 386,199 | 492,745 | 516,778 |
| Debt-to-capital ratio | 0.12 | 0.30 | 0.30 | 0.25 | 0.29 |
March 2, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $62,000K ÷ ($62,000K + $471,025K)
= 0.12
The debt-to-capital ratio of Apogee Enterprises Inc has shown a fluctuating trend over the past five years. In the most recent fiscal year ending March 2, 2024, the ratio decreased significantly to 0.12 from 0.30 in the previous year. This indicates a substantial reduction in the company's reliance on debt compared to its total capital structure.
The decrease in the debt-to-capital ratio suggests that Apogee Enterprises Inc has either reduced its debt levels or increased its equity, leading to a stronger financial position with lower financial risk. This improvement in financial leverage may enhance the company's ability to weather economic downturns and pursue growth opportunities in a more sustainable manner.
Overall, the declining trend in the debt-to-capital ratio for Apogee Enterprises Inc is a positive indication of the company's financial health and prudent management of its capital structure in recent years.