Carpenter Technology Corporation (CRS)

Debt-to-capital ratio

		Jun 30, 2024	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
Long-term debt	US$ in thousands	694,200	693,900	693,600	693,300	693,000	692,700	692,400	692,100	691,800	690,900	695,000	694,800	694,500	694,300	694,000	693,800	551,800	552,400	550,600	550,900
Total stockholders’ equity	US$ in thousands	1,628,800	1,502,600	1,473,800	1,429,300	1,396,100	1,327,200	1,321,100	1,306,800	1,330,500	1,347,100	1,333,100	1,367,600	1,392,300	1,381,200	1,332,900	1,407,500	1,445,700	1,618,500	1,603,400	1,577,000
Debt-to-capital ratio		0.30	0.32	0.32	0.33	0.33	0.34	0.34	0.35	0.34	0.34	0.34	0.34	0.33	0.33	0.34	0.33	0.28	0.25	0.26	0.26

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

Over the past few years, Carpenter Technology Corporation's debt-to-capital ratio has remained relatively stable, fluctuating around the range of 0.25 to 0.35. The ratio indicates the proportion of the company's capital that is financed by debt, with the remaining portion coming from equity.

A lower debt-to-capital ratio implies that a company is relying more on equity financing rather than debt, which can indicate a stronger financial position and lower financial risk. Conversely, a higher ratio suggests higher levels of debt relative to capital, which could indicate increased financial leverage and potentially higher risk.

Carpenter's debt-to-capital ratio has generally been in the mid to lower end of the range, indicating a conservative approach to debt financing. This suggests that the company has been managing its debt levels prudently, balancing the benefits of debt financing with the associated risks.

Overall, based on the historical data provided, Carpenter Technology Corporation appears to have maintained a manageable level of debt in relation to its capital structure, which can be seen as a positive indicator of its financial health and stability.