DocuSign Inc (DOCU)

Debt-to-capital ratio

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	0	684,861	720,677	719,616	718,487	718,821	730,272	742,577	693,219	486,149	479,105	472,162
Total stockholders’ equity	US$ in thousands	2,002,690	1,989,380	1,961,410	1,137,000	1,129,740	965,033	847,759	749,492	617,287	468,506	407,131	348,949	275,503	239,569	211,876	243,237	325,737	426,032	501,891	522,788
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.59	0.64	0.67	0.72	0.75	0.78	0.75	0.68	0.53	0.49	0.47

January 31, 2025 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,002,690K)
= 0.00

The debt-to-capital ratio of DocuSign Inc has shown a fluctuating trend over the past few years. As of January 31, 2023, the ratio dropped to 0.00, indicating either a significant reduction in debt or an increase in capital. This trend continued through the following periods up to January 31, 2025, remaining at 0.00.

A debt-to-capital ratio of 0.00 suggests that the company has either eliminated its debt entirely or that its debt is negligible compared to its total capital. This can be a positive sign as it implies a lower financial risk and a stronger financial position for the company. It may also indicate that DocuSign is relying more on equity financing rather than debt financing.

Monitoring the debt-to-capital ratio can provide insights into a company's financial leverage and risk profile. In the case of DocuSign Inc, the decreasing trend in the ratio to 0.00 over the specified periods suggests a prudent debt management strategy and possibly a focus on equity financing to support its growth and operations.