The Cooper Companies Inc. (COO)
Debt-to-equity 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-equity ratio | 0.33 | 0.33 | 0.20 | 0.36 | 0.35 |
October 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,520,400K ÷ $7,550,800K
= 0.33
The debt-to-equity ratio measures the extent to which a company is using debt financing relative to its equity. A lower ratio indicates less reliance on debt and a stronger capital structure. Cooper Companies, Inc.'s debt-to-equity ratio has fluctuated over the past five years, ranging from 0.21 to 0.50.
In 2023, the ratio stands at 0.34, representing a decrease from the previous year's 0.39. This implies that the company has reduced its reliance on debt as a source of financing in comparison to equity. The trend indicates an improving financial leverage position, which could enhance the company's financial stability and potentially reduce its financial risk.
The trend from 2020 to 2023 shows a decrease in the debt-to-equity ratio, indicating a shift towards a more equity-driven capital structure. This suggests that the company may be managing its debt levels effectively or experiencing growth in equity, both of which can be positive indicators for investors and lenders. Overall, the company's management of debt relative to equity appears to have improved over the past few years.
Peer comparison
Oct 31, 2023