Dick’s Sporting Goods Inc (DKS)
Debt-to-equity ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 0 | 58,271 | 449,287 | 418,500 | 224,100 |
| Total stockholders’ equity | US$ in thousands | 2,617,280 | 2,524,620 | 2,101,590 | 2,339,530 | 1,731,600 |
| Debt-to-equity ratio | 0.00 | 0.02 | 0.21 | 0.18 | 0.13 |
February 3, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $0K ÷ $2,617,280K
= 0.00
The debt-to-equity ratio of Dick’s Sporting Goods Inc has exhibited fluctuating trends over the past five years. It stood at 0.00 as of February 3, 2024, implying that the company had no debt in relation to its equity at that point in time. This marks a significant improvement from the previous year when the ratio was at 0.02, indicating a minimal level of debt compared to equity.
Looking further back, the debt-to-equity ratio was 0.21 on January 29, 2022, signifying a higher proportion of debt relative to equity in the company's capital structure. The ratio decreased to 0.18 on January 30, 2021, suggesting a slight reduction in leverage compared to the previous year. On February 1, 2020, the ratio was at 0.13, indicating a moderate level of debt in relation to equity.
The varying levels of the debt-to-equity ratio over the years reflect changes in the company's financing decisions and overall leverage position. A low or decreasing ratio generally indicates a lower financial risk and a stronger equity base to support operations and growth. Conversely, a high or increasing ratio could signal higher financial risk and reliance on debt for funding.
Overall, the recent decline in Dick’s Sporting Goods Inc's debt-to-equity ratio to 0.00 suggests a healthier financial position with minimal debt obligations relative to equity as of February 3, 2024. However, it is essential to consider other financial metrics and factors in conjunction with the debt-to-equity ratio to gain a comprehensive understanding of the company's financial health and risk profile.
Peer comparison
Feb 3, 2024