Azenta Inc (AZTA)
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 | — | — | 49,677 | 49,588 | 50,315 |
| Total stockholders’ equity | US$ in thousands | 2,534,500 | 3,363,390 | 1,325,330 | 1,213,610 | 1,138,950 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.04 | 0.04 | 0.04 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,534,500K)
= 0.00
Sure, the debt-to-capital ratio measures the proportion of a company's capital that is financed by debt. A lower ratio indicates a lower level of debt relative to total capital, which can be seen as a favorable financial position.
Azenta Inc's debt-to-capital ratio has remained consistently low at 0.00 over the past two years, indicating that the company has not relied heavily on debt financing to fund its operations. This suggests that the company has been able to finance its operations and investments primarily through equity and retained earnings, which can be seen as a positive sign of financial stability and strength.
It is important to note that the debt-to-capital ratio of 0.04 in 2021 and 2020 also indicates a relatively low level of debt compared to total capital, indicating a consistent approach to maintaining a conservative capital structure.
Overall, Azenta Inc's consistent low debt-to-capital ratio over the past five years reflects a prudent approach to capital structure and indicates a lower financial risk associated with excessive debt burden.
Peer comparison
Sep 30, 2023