DXC Technology Co (DXC)

Debt-to-capital ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Long-term debt	US$ in thousands	3,818,000	3,900,000	4,065,000	4,345,000	8,672,000
Total stockholders’ equity	US$ in thousands	2,811,000	3,497,000	5,052,000	4,973,000	4,785,000
Debt-to-capital ratio		0.58	0.53	0.45	0.47	0.64

March 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,818,000K ÷ ($3,818,000K + $2,811,000K)
= 0.58

The debt-to-capital ratio of DXC Technology Co has fluctuated over the past five years, ranging from 0.45 to 0.64. It indicates the proportion of the company's capital structure that is financed by debt. A higher ratio implies a greater reliance on debt financing, while a lower ratio suggests a higher proportion of equity in the capital structure.

The ratio increased from 0.45 in 2022 to 0.64 in 2020, reflecting a significant rise in debt relative to capital during that period. In 2021, the ratio decreased slightly to 0.47, before declining further to 0.53 in 2023. However, by the end of 2024, the ratio had increased to 0.58.

Overall, the trend in the debt-to-capital ratio of DXC Technology Co suggests some variability in the company's capital structure over the years, with notable fluctuations in the levels of debt relative to total capital. This may indicate shifts in the company's financing strategy or changes in its financial risk profile during the period under consideration.