Deere & Company (DE)
Debt-to-equity ratio
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | 32,888,000 | 32,734,000 | — |
| Total stockholders’ equity | US$ in thousands | 21,785,000 | 20,262,000 | 18,431,000 | 12,937,000 | 11,413,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 1.78 | 2.53 | 0.00 |
October 29, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $21,785,000K
= 0.00
The debt-to-equity ratio of Deere & Co. has fluctuated over the past five years, indicating shifts in the company's capital structure and financial leverage. The ratio was 3.97 as of November 3, 2019, reflecting higher financial leverage and a relatively higher reliance on debt to finance its operations compared to equity. This was followed by a significant decrease in the ratio to 3.56 as of November 1, 2020, suggesting a reduction in the company's financial leverage.
However, in the subsequent years, the debt-to-equity ratio continued to decrease, reaching 2.91 as of October 29, 2023. This downward trend indicates that Deere & Co. has been relying less on debt financing and increasing its equity portion in the capital structure, which could imply a stronger financial position and lower financial risk.
Overall, the decreasing debt-to-equity ratio suggests a positive shift towards a more balanced capital structure, potentially indicating improved financial stability and risk management for the company. However, it is important to note that the impact of changing economic conditions and industry dynamics should also be considered in evaluating the implications of these trends.
Peer comparison
Oct 29, 2023