Capri Holdings Ltd (CPRI)
Debt-to-equity ratio
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,261,000 | 1,383,000 | 2,079,000 | 1,924,000 | 1,822,000 | 1,521,000 | 1,585,000 | 1,382,000 | 1,131,000 | 976,000 | 1,104,000 | 1,206,000 | 1,219,000 | 1,243,000 | 1,581,000 | 1,577,000 | 2,012,000 | 1,085,000 | 1,796,000 | 1,917,000 |
| Total stockholders’ equity | US$ in thousands | 1,599,000 | 1,934,000 | 1,911,000 | 1,811,000 | 1,848,000 | 2,223,000 | 2,143,000 | 2,377,000 | 2,559,000 | 2,776,000 | 2,602,000 | 2,452,000 | 2,158,000 | 2,356,000 | 2,199,000 | 2,006,000 | 2,167,000 | 2,609,000 | 2,405,000 | 2,321,000 |
| Debt-to-equity ratio | 0.79 | 0.72 | 1.09 | 1.06 | 0.99 | 0.68 | 0.74 | 0.58 | 0.44 | 0.35 | 0.42 | 0.49 | 0.56 | 0.53 | 0.72 | 0.79 | 0.93 | 0.42 | 0.75 | 0.83 |
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 exhibited fluctuations over the past few quarters. The ratio has been consistently below 1, indicating that the company has generally been financing its operations more through equity rather than debt.
During the earlier periods in 2019 and early 2020, the debt-to-equity ratio was relatively low, around 0.4 to 0.7, suggesting a conservative capital structure with lower reliance on debt financing. However, the ratio increased in mid to late 2020 and peaked in the third quarter of 2023 at 1.09, indicating a higher proportion of debt relative to equity in the company's capital structure during that period.
Subsequently, there was a decrease in the ratio in the following quarters, showing a decreased reliance on debt financing. Most recently, as of March 31, 2024, the debt-to-equity ratio stood at 0.79, still below 1 but higher compared to some earlier periods.
Overall, the trend in Capri Holdings Ltd's debt-to-equity ratio suggests a shifting capital structure with varying levels of debt and equity financing. Investors and stakeholders may monitor future changes in the ratio to assess the company's leverage and financial risk profile.
Peer comparison
Mar 31, 2024