Cavco Industries Inc (CVCO)
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 | — | — | — | 10,335 | 12,705 |
| Total stockholders’ equity | US$ in thousands | 1,033,410 | 976,286 | 830,455 | 683,640 | 607,586 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.01 | 0.02 |
March 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,033,410K)
= 0.00
The debt-to-capital ratio of Cavco Industries Inc has demonstrated a declining trend over the past five years, reaching 0.00 as of March 31, 2024. This indicates that the company has been relying less on debt to finance its operations and growth, with a significant increase in the proportion of capital funding compared to debt financing. The gradual decrease in the debt-to-capital ratio suggests an improved financial stability and reduced financial risk for Cavco Industries Inc. It is important to note that having a debt-to-capital ratio of 0.00 does not necessarily mean there is no debt on the company's balance sheet, but rather that the level of debt is minimal in relation to the total capital structure.