Cencora Inc. (COR)
Debt-to-equity 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-equity ratio | 5.90 | 7.94 | — | 28.58 | — |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,811,740K ÷ $645,938K
= 5.90
The debt-to-equity ratio of Cencora Inc. has shown a decreasing trend over the past few years, indicating a more conservative financing structure. From 2020 to 2023, the ratio declined significantly from 28.58 to 7.94, suggesting a reduction in the company's reliance on debt compared to equity for financing its operations. However, in 2024, there was a slight increase in the ratio to 5.90, which could imply a moderate uptick in debt levels relative to equity.
While a high debt-to-equity ratio can indicate higher financial risk and leverage, Cencora Inc.'s decreasing trend indicates a positive shift towards a more balanced and potentially less risky capital structure. It is essential for the company to monitor and manage its debt levels effectively to maintain financial stability and sustainable growth in the future.
Peer comparison
Sep 30, 2024