Carpenter Technology Corporation (CRS)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,628,800	1,396,100	1,330,500	1,392,300	1,445,700
Debt-to-capital ratio		0.30	0.33	0.34	0.33	0.28

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $694,200K ÷ ($694,200K + $1,628,800K)
= 0.30

The debt-to-capital ratio of Carpenter Technology Corporation has been relatively stable over the past five years, ranging from 0.28 to 0.34. This ratio measures the proportion of total debt in relation to the company's total capital, which includes both debt and equity. In the most recent fiscal year as of June 30, 2024, the debt-to-capital ratio stood at 0.30.

A lower debt-to-capital ratio indicates a lower level of financial risk and suggests that the company relies less on debt financing compared to equity financing. Conversely, a higher ratio may indicate higher financial leverage and risk.

Overall, Carpenter Technology Corporation maintains a moderate level of debt in relation to its total capital, which suggests a balanced capital structure. However, it is crucial to consider other financial metrics and economic conditions to gain a comprehensive understanding of the company's overall financial health and risk profile.