Cencora Inc. (COR)
Debt-to-capital ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,811,740 | 4,146,110 | 4,632,360 | 6,383,710 | 3,618,260 |
| Total stockholders’ equity | US$ in thousands | 645,938 | 522,003 | -211,559 | 223,354 | -1,018,920 |
| Debt-to-capital ratio | 0.86 | 0.89 | 1.05 | 0.97 | 1.39 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,811,740K ÷ ($3,811,740K + $645,938K)
= 0.86
The debt-to-capital ratio of Cencora Inc. has shown a decreasing trend over the past five years, indicating a gradual improvement in the company's capital structure and debt management. The ratio decreased from 1.39 in 2020 to 0.86 in 2024, reflecting a reduction in the proportion of debt relative to the company's total capital.
A lower debt-to-capital ratio suggests that the company is relying less on debt financing and is instead using a greater proportion of equity to fund its operations. This can be a positive sign for investors and creditors as it indicates potentially lower financial risk and improved financial stability.
Although the ratio has fluctuated over the years, the overall downward trend is favorable for Cencora Inc. as it indicates a more conservative approach to managing its capital structure. Further analysis of the company's financial statements and business strategy would provide additional insights into the factors influencing this trend and its implications for the company's financial health.
Peer comparison
Sep 30, 2024