DXC Technology Co (DXC)

Debt-to-equity 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-equity ratio		1.36	1.12	0.80	0.87	1.81

March 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,818,000K ÷ $2,811,000K
= 1.36

The debt-to-equity ratio of DXC Technology Co has shown fluctuations over the past five years. In March 2020, the ratio was 1.81, indicating that the company had higher levels of debt in relation to its equity. This high ratio could suggest increased financial risk due to reliance on debt financing.

Subsequently, the ratio decreased to 0.87 in March 2021, reflecting a lower level of debt relative to equity. This reduction may signify an improvement in the company's financial health and a decreased reliance on debt for funding its operations.

However, the ratio increased to 0.80 in March 2022, indicating a slight uptick in leverage through debt. This ratio continued to rise to 1.12 in March 2023, suggesting a further increase in debt compared to equity.

Most recently, as of March 31, 2024, the debt-to-equity ratio stood at 1.36, signifying a significant rise in leverage through debt financing. This increase may raise concerns about the company's ability to service its debt obligations and potential strain on its financial flexibility.

Overall, the trend in the debt-to-equity ratio for DXC Technology Co highlights variability in the company's capital structure over the years, with periodic shifts towards higher levels of debt relative to equity. Investors and analysts may monitor this ratio closely to assess the company's financial risk profile and leverage position.