Carpenter Technology Corporation (CRS)

Debt-to-assets ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	694,200	693,000	691,800	694,500	551,800
Total assets	US$ in thousands	3,291,700	3,053,900	2,932,300	2,971,200	3,227,200
Debt-to-assets ratio		0.21	0.23	0.24	0.23	0.17

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $694,200K ÷ $3,291,700K
= 0.21

The debt-to-assets ratio of Carpenter Technology Corporation has shown a relatively stable trend over the past five years. The ratio has fluctuated within a narrow range, with values ranging from 0.17 to 0.24.

In the latest financial period ending on June 30, 2024, the debt-to-assets ratio stood at 0.21, indicating that 21% of the company's total assets were financed through debt. This suggests that Carpenter Technology Corporation has maintained a conservative approach to leveraging, as a lower ratio implies less reliance on debt for funding its operations.

Although the ratio has slightly decreased from the previous year, the overall trend reflects a prudent financial management strategy, balancing the use of debt with the company's asset base. It is important to note that variations in the debt-to-assets ratio can be influenced by changes in the company's capital structure, borrowing levels, asset composition, and overall financial performance.

Overall, the consistent but relatively low debt-to-assets ratio of Carpenter Technology Corporation indicates a level of financial stability and risk management that may be favorable to investors and creditors.