Academy Sports Outdoors Inc (ASO)
Debt-to-capital ratio
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 484,551 | 583,364 | 583,729 | 584,093 | 584,456 | 682,803 | 683,065 | 683,325 | 683,585 | 683,845 | 684,103 | 781,035 | 781,489 | 1,408,880 |
| Total stockholders’ equity | US$ in thousands | 1,954,650 | 1,793,090 | 1,738,040 | 1,680,960 | 1,628,310 | 1,558,920 | 1,521,270 | 1,528,510 | 1,466,950 | 1,375,990 | 1,447,620 | 1,313,880 | 1,111,980 | 984,564 |
| Debt-to-capital ratio | 0.20 | 0.25 | 0.25 | 0.26 | 0.26 | 0.30 | 0.31 | 0.31 | 0.32 | 0.33 | 0.32 | 0.37 | 0.41 | 0.59 |
February 3, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $484,551K ÷ ($484,551K + $1,954,650K)
= 0.20
The debt-to-capital ratio of Academy Sports Outdoors Inc has fluctuated over the past few quarters, indicating changes in the company's capital structure and financial leverage. The trend shows a gradual increase in the ratio from 0.20 on Oct 31, 2020, to 0.59 on Oct 31, 2020. This increase suggests that the company has been relying more on debt financing compared to its total capital, which includes both debt and equity.
A higher debt-to-capital ratio may indicate higher financial risk due to increased reliance on debt to fund operations or expansion. It also implies a higher interest burden that the company needs to manage. On the other hand, a lower ratio indicates a more conservative approach to financing, with a greater proportion of equity in the capital structure.
It is important for investors and stakeholders to closely monitor changes in the debt-to-capital ratio to assess the company's financial health and risk profile. Additionally, analyzing the trend of this ratio over time can provide insights into the company's ability to manage its debt levels effectively and maintain a sustainable capital structure.
Peer comparison
Feb 3, 2024