Capri Holdings Ltd (CPRI)
Debt-to-assets ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,261,000 | 1,822,000 | 1,131,000 | 1,219,000 | 2,012,000 |
| Total assets | US$ in thousands | 6,689,000 | 7,295,000 | 7,480,000 | 7,481,000 | 7,946,000 |
| Debt-to-assets ratio | 0.19 | 0.25 | 0.15 | 0.16 | 0.25 |
March 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,261,000K ÷ $6,689,000K
= 0.19
The debt-to-assets ratio of Capri Holdings Ltd has shown a fluctuating trend over the past five years. In the most recent fiscal year ending March 31, 2024, the ratio stands at 0.19, indicating that 19% of the company's assets are financed through debt. This represents a decrease from the prior year, where the ratio was 0.25.
Looking back over the past five years, we observe that the ratio reached its highest point in fiscal year 2020 at 0.25 and its lowest point in fiscal year 2022 at 0.15. This signifies some variability in the company's capital structure and the extent to which it relies on debt financing.
A lower debt-to-assets ratio generally suggests a lower financial risk, indicating that a smaller proportion of the company's assets are funded by debt. Conversely, a higher ratio could imply higher leverage and financial risk, as a larger portion of assets are financed through borrowing.
Overall, Capri Holdings Ltd's debt-to-assets ratio has displayed some fluctuations, showcasing the company's changing reliance on debt as a source of financing. It is important for stakeholders to monitor this ratio closely to assess the company's financial health and risk profile.
Peer comparison
Mar 31, 2024