CSW Industrials Inc (CSWI)
Debt-to-capital ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 166,000 | 253,000 | 252,214 | 241,776 | 10,337 |
| Total stockholders’ equity | US$ in thousands | 635,078 | 525,675 | 469,086 | 415,449 | 280,365 |
| Debt-to-capital ratio | 0.21 | 0.32 | 0.35 | 0.37 | 0.04 |
March 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $166,000K ÷ ($166,000K + $635,078K)
= 0.21
The debt-to-capital ratio of CSW Industrials Inc has been fluctuating over the past five years. In March 2020, the ratio was significantly lower at 0.04, indicating a more conservative capital structure with a lower reliance on debt financing. However, from 2021 to 2023, the ratio increased steadily from 0.37 to 0.32 to 0.35, which suggests increased debt levels relative to the total capital employed in the business.
Interestingly, in March 2024, CSW Industrials Inc managed to lower its debt-to-capital ratio to 0.21, demonstrating a reduction in debt or an increase in equity capital. This improvement could signify a deleveraging strategy or a shift towards a more equity-funded capital structure, potentially reducing the financial risk associated with high debt levels.
Overall, the trend in the debt-to-capital ratio for CSW Industrials Inc indicates variations in the company's capital structure and financing strategy over the years, with the latest decrease in the ratio reflecting a positive development towards a potentially more sustainable financial position.
Peer comparison
Mar 31, 2024