Bellring Brands LLC (BRBR)

Debt-to-capital ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	856,800	929,500	481,200	622,600
Total stockholders’ equity	US$ in thousands	-323,500	-376,200	-3,062,800	-2,182,600
Debt-to-capital ratio		1.61	1.68	—	—

September 30, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $856,800K ÷ ($856,800K + $-323,500K)
= 1.61

The debt-to-capital ratio measures the proportion of a company's total capitalization that is contributed by debt. It is calculated by dividing the company's total debt by the sum of its total debt and total equity. A higher ratio generally indicates higher financial leverage and potential risk.

Bellring Brands Inc's debt-to-capital ratio has fluctuated over the years, standing at 1.61 as of September 30, 2023, and 1.68 as of September 30, 2022. These values indicate that a significant portion of the company's capital structure is composed of debt. The downward trend from 2022 to 2023 suggests a reduction in the reliance on debt for capitalization relative to equity.

Notably, the absence of data for 2021 and 2020 makes it difficult to assess the trend comprehensively. The 0.00 ratio in 2019 suggests either a period of minimal debt or an anomalous event impacting the ratio's calculation.

Considering the high debt-to-capital ratio in 2023 and 2022, it's essential to monitor Bellring Brands Inc's ability to service its debt obligations and manage financial risk, particularly in the context of market dynamics and industry competition. Further analysis of sector benchmarks and peer comparisons could provide additional insights into the company's capital structure and financial risk profile.