Commercial Metals Company (CMC)
Debt-to-equity ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,120,870 | 3,286,200 | 2,294,880 | 1,889,200 | 1,623,860 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
August 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $4,120,870K
= 0.00
The debt-to-equity ratio of Commercial Metals Co. has exhibited a declining trend over the past five years, indicating a favorable shift in the company's capital structure. The ratio decreased from 0.77 in 2019 to 0.28 in 2023, reflecting a significant reduction in the proportion of debt relative to equity. This decline suggests that the company may be relying more on equity financing rather than debt, which can enhance financial stability and reduce the associated interest expenses and financial risk. Overall, the decreasing trend in the debt-to-equity ratio implies improved debt management and a strengthening financial position for Commercial Metals Co.
Peer comparison
Aug 31, 2023