Deere & Company (DE)
Debt-to-assets ratio
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | 32,888,000 | 32,734,000 |
| Total assets | US$ in thousands | 107,320,000 | 104,087,000 | 90,030,000 | 84,114,000 | 75,091,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.39 | 0.44 |
October 27, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $107,320,000K
= 0.00
The debt-to-assets ratio for Deere & Company has shown a consistent decline over the past five years, dropping from 0.44 in 2020 to 0.39 in 2021, and then further decreasing to 0.00 in the subsequent years up to 2024. A debt-to-assets ratio of 0.00 indicates that the company has no debt in relation to its total assets, implying that it is entirely financed by equity or other sources of funding. This signifies a strong financial position with minimal risk related to debt obligations. However, it is important to note that a very low debt-to-assets ratio can also potentially indicate underutilization of debt financing, missing out on the tax benefits and leveraging power it can provide. Overall, Deere & Company's decreasing debt-to-assets ratio suggests a conservative capital structure and a prudent approach towards managing its debt levels.
Peer comparison
Oct 27, 2024