Deere & Company (DE)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 1.78 | 2.53 |
October 27, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $22,836,000K
= 0.00
The debt-to-equity ratio of Deere & Company has shown a declining trend over the past five years, from 2.53 in November 2020 to 0.00 in October 2024. This indicates that the company has reduced its reliance on debt in relation to equity in its capital structure. A debt-to-equity ratio of 0.00 in the most recent year suggests that the company may have either reduced its debt levels significantly or increased its equity base. This can be seen as a positive sign as it reflects a stronger financial position and lower financial risk, as the company has less debt relative to shareholders' equity to finance its operations. However, it is important to note that a very low or zero debt-to-equity ratio may also indicate underutilization of debt financing which could potentially limit the company's growth opportunities. Further analysis of the company's overall financial health and performance would provide a more complete understanding of its capital structure decisions.
Peer comparison
Oct 27, 2024