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.