Caseys General Stores Inc (CASY)

Debt-to-capital ratio

		Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019
Long-term debt	US$ in thousands	1,582,760	1,583,610	1,596,790	1,598,520	1,620,510	1,634,500	1,639,580	1,639,180	1,663,400	1,766,050	1,677,390	1,682,170	1,361,400	1,362,080	1,361,920	1,281,740	714,502	715,121	715,060	1,303,430
Total stockholders’ equity	US$ in thousands	3,015,380	2,947,460	2,897,390	2,776,300	2,660,670	2,606,780	2,512,820	2,380,050	2,240,840	2,185,610	2,123,130	2,030,660	1,932,680	1,893,590	1,859,850	1,751,240	1,643,200	1,588,590	1,561,850	1,489,210
Debt-to-capital ratio		0.34	0.35	0.36	0.37	0.38	0.39	0.39	0.41	0.43	0.45	0.44	0.45	0.41	0.42	0.42	0.42	0.30	0.31	0.31	0.47

April 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,582,760K ÷ ($1,582,760K + $3,015,380K)
= 0.34

The debt-to-capital ratio of Caseys General Stores Inc has shown some fluctuations over the past few years, ranging from 0.30 to 0.47. The ratio measures the proportion of a company's total debt to its total capital, which includes both debt and equity.

The trend indicates that the company's reliance on debt has been increasing over time, as reflected in the rising ratio values from 0.30 in July 2020 to 0.47 in January 2022. An increasing debt-to-capital ratio suggests that the company is financing more of its operations through debt rather than equity.

However, it's important to consider the industry norms and the company's specific circumstances when evaluating the debt-to-capital ratio. High levels of debt can indicate higher financial risk and may lead to constraints on future expansion or increased vulnerability to economic downturns. On the other hand, moderate levels of debt can be beneficial for a company by providing tax advantages and leveraging opportunities.

Overall, Caseys General Stores Inc's debt-to-capital ratio should be monitored closely to assess its financial health and ensure that the company's debt levels are sustainable and aligned with its long-term growth objectives.