The Cooper Companies Inc. (COO)
Debt-to-capital ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,520,400 | 2,347,100 | 1,396,100 | 1,383,900 | 1,262,600 |
| Total stockholders’ equity | US$ in thousands | 7,550,800 | 7,174,500 | 6,941,800 | 3,824,600 | 3,628,400 |
| Debt-to-capital ratio | 0.25 | 0.25 | 0.17 | 0.27 | 0.26 |
October 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,520,400K ÷ ($2,520,400K + $7,550,800K)
= 0.25
The debt-to-capital ratio measures the proportion of a company's capital structure that is financed by debt. A lower ratio indicates a lower reliance on debt financing, while a higher ratio suggests a greater level of debt in the company's capital structure.
From the data provided, we can observe that Cooper Companies, Inc.'s debt-to-capital ratio has fluctuated over the past five years. In 2023, the ratio decreased to 0.25 from 0.28 in 2022, indicating a reduction in the relative proportion of debt to total capital. This reduction suggests a lower dependency on debt financing compared to the previous year.
Looking further back, the ratio was 0.18 in 2021, indicating a relatively conservative capital structure with a lower level of debt. However, in 2020 and 2019, the ratio was higher at 0.32 and 0.33, respectively, signaling a higher reliance on debt financing in those years.
Overall, the trend in Cooper Companies, Inc.'s debt-to-capital ratio indicates some variability in its capital structure and debt management over the past five years. It is important for stakeholders to monitor the company's debt levels and evaluate the associated risks and benefits in relation to its overall capital structure and financial stability.
Peer comparison
Oct 31, 2023