Concentrix Corporation (CNXC)

Debt-to-capital ratio

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021
Long-term debt	US$ in thousands	4,939,710	2,224,290	802,017
Total stockholders’ equity	US$ in thousands	4,143,290	2,695,900	2,620,260
Debt-to-capital ratio		0.54	0.45	0.23

November 30, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,939,710K ÷ ($4,939,710K + $4,143,290K)
= 0.54

The debt-to-capital ratio of Concentrix Corp. has fluctuated over the past five years, indicating changes in its capital structure and financial leverage. In 2019, the ratio was relatively high at 0.57, suggesting a larger proportion of debt relative to the total capital employed. However, there was a significant decrease in 2021, with the ratio dropping to 0.23, reflecting a lower level of financial leverage and a greater reliance on equity financing.

The ratio increased in 2022 to 0.45, signaling a shift towards a higher debt component in the capital structure. Subsequently, in 2023, the debt-to-capital ratio further increased to 0.54, indicating a rising proportion of debt in the capital structure relative to equity.

These fluctuations in the debt-to-capital ratio may point to changes in Concentrix Corp.'s financing strategy and its ability to meet financial obligations. It is important to consider the reasons behind these changes and their potential impact on the company's financial risk and cost of capital.