Carpenter Technology Corporation (CRS)

Debt-to-equity 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-equity ratio		0.43	0.50	0.52	0.50	0.38

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $694,200K ÷ $1,628,800K
= 0.43

The debt-to-equity ratio of Carpenter Technology Corporation has fluctuated over the past five years, ranging from 0.38 in June 2020 to 0.52 in June 2022. This ratio indicates the proportion of the company's total debt to its shareholders' equity. A decreasing trend from 0.52 in June 2022 to 0.43 in June 2024 suggests that the company has reduced its reliance on debt financing relative to equity.

The lower debt-to-equity ratio in June 2024 can be viewed positively as it signifies a lower level of financial leverage and reduces the company's risk of default. However, it is important to note that a very low debt-to-equity ratio could also indicate underutilization of debt for potential growth opportunities. Overall, monitoring the trend of Carpenter Technology Corporation's debt-to-equity ratio can provide insights into its capital structure and financial risk management strategies.