Cencora Inc. (COR)
Debt-to-capital ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,146,110 | 4,632,360 | 6,383,710 | 3,618,260 | 4,033,880 |
| Total stockholders’ equity | US$ in thousands | 522,003 | -211,559 | 223,354 | -1,018,920 | 2,878,920 |
| Debt-to-capital ratio | 0.89 | 1.05 | 0.97 | 1.39 | 0.58 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,146,110K ÷ ($4,146,110K + $522,003K)
= 0.89
The debt-to-capital ratio for Cencora Inc. has shown fluctuations over the past four years. As of September 30, 2023, the ratio stands at 0.90, indicating a decrease from the previous year. This suggests that the company's reliance on debt as a source of financing has decreased in relation to its total capital. However, it is important to note that the ratio was higher in the prior year, at 1.04, and has been experiencing some volatility.
Comparing the current ratio to the one from two years ago, the company's reliance on debt has decreased from 0.97 to 0.90, which may signal improved financial stability. However, in December 2020, the ratio was also similar at 0.96, implying that the company's debt usage relative to its total capital has been relatively steady over the last four years.
Overall, while the recent decrease in the debt-to-capital ratio may indicate a positive trend in the company's capital structure, further analysis of the components comprising the ratio, as well as consideration of industry benchmarks, is necessary to fully assess the implications of these changes for Cencora Inc.'s financial position and risk profile.
Peer comparison
Sep 30, 2023