Deere & Company (DE)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 22,836,000 | 21,785,000 | 20,262,000 | 18,431,000 | 12,937,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.64 | 0.72 |
October 27, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $22,836,000K)
= 0.00
The debt-to-capital ratio for Deere & Company has shown a declining trend over the past five years, decreasing from 0.72 in November 2020 to 0.64 in October 2021, and eventually reaching 0.00 in October 2022, where it has remained constant through October 2024. This pattern indicates that the company has significantly reduced its reliance on debt as a source of capital over the years. A debt-to-capital ratio of 0.00 suggests that the company's capital structure is primarily equity-funded, which can be viewed positively by investors and creditors as it signifies lower financial risk and a healthier balance sheet. However, it is important to note that a zero debt-to-capital ratio may also point to an underutilization of debt in financing potential growth opportunities. Overall, Deere & Company's consistent low debt-to-capital ratio is indicative of a sound financial position and a prudent approach to managing its capital structure.
Peer comparison
Oct 27, 2024