Capri Holdings Ltd (CPRI)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 1,599,000 | 1,848,000 | 2,559,000 | 2,158,000 | 2,167,000 |
| Debt-to-equity ratio | 0.79 | 0.99 | 0.44 | 0.56 | 0.93 |
March 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,261,000K ÷ $1,599,000K
= 0.79
The debt-to-equity ratio of Capri Holdings Ltd has fluctuated over the past five years, ranging from 0.44 to 0.99. The ratio indicates the proportion of company financing that comes from debt compared to equity. A higher ratio suggests a higher level of financial leverage, indicating that the company relies more on borrowed funds to finance its operations.
In 2022, the debt-to-equity ratio was relatively low at 0.44, indicating that the company had a lower level of debt compared to equity during that period. This may suggest a more conservative approach to financing.
However, in 2023 and 2024, the ratio increased to 0.99 and 0.79, respectively, indicating a higher reliance on debt to finance operations during these years. This increase could be a result of strategic decisions to take on more debt for growth opportunities or other investment activities.
Overall, the fluctuation in the debt-to-equity ratio of Capri Holdings Ltd over the past five years suggests varying levels of risk and financial leverage in the company's capital structure. Investors and analysts may want to monitor these ratios closely to assess the company's financial health and risk profile.
Peer comparison
Mar 31, 2024