CSW Industrials Inc (CSWI)
Debt-to-equity 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-equity ratio | 0.26 | 0.48 | 0.54 | 0.58 | 0.04 |
March 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $166,000K ÷ $635,078K
= 0.26
The debt-to-equity ratio of CSW Industrials Inc has shown a declining trend over the five-year period from 2020 to 2024. In 2020, the ratio was unusually low at 0.04, indicating a conservative capital structure with a minimal dependence on debt financing. Subsequently, there was a significant increase in the ratio to 0.58 by 2021, suggesting a higher level of debt usage relative to equity in financing the company's operations.
However, from 2021 onwards, there was a notable decrease in the debt-to-equity ratio, reaching 0.26 by March 31, 2024. This downward trend indicates a shift towards a more balanced capital structure with reduced reliance on debt financing and a relatively stronger equity position in the company's capital base.
The declining trend in the debt-to-equity ratio may signify that CSW Industrials Inc has been actively managing its debt levels and working towards a more sustainable financial structure. A lower ratio can be viewed positively by investors and creditors as it indicates lower financial risk and potentially higher financial stability for the company. Overall, the decreasing trend in the debt-to-equity ratio of CSW Industrials Inc reflects a positive improvement in its financial leverage over the five-year period.
Peer comparison
Mar 31, 2024