DXC Technology Co (DXC)
Debt-to-equity ratio
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,818,000 | 3,880,000 | 3,791,000 | 3,891,000 | 3,900,000 | 3,850,000 | 3,695,000 | 3,874,000 | 4,065,000 | 4,236,000 | 4,363,000 | 4,116,000 | 4,345,000 | 5,444,000 | 8,046,000 | 10,334,000 | 8,672,000 | 7,315,000 | 7,698,000 | 7,893,000 |
| Total stockholders’ equity | US$ in thousands | 2,811,000 | 3,107,000 | 3,147,000 | 3,278,000 | 3,497,000 | 4,627,000 | 4,615,000 | 4,725,000 | 5,052,000 | 4,772,000 | 4,772,000 | 5,077,000 | 4,973,000 | 5,655,000 | 4,401,000 | 4,593,000 | 4,785,000 | 8,749,000 | 8,550,000 | 10,913,000 |
| Debt-to-equity ratio | 1.36 | 1.25 | 1.20 | 1.19 | 1.12 | 0.83 | 0.80 | 0.82 | 0.80 | 0.89 | 0.91 | 0.81 | 0.87 | 0.96 | 1.83 | 2.25 | 1.81 | 0.84 | 0.90 | 0.72 |
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 fluctuated over the past few quarters, indicating changes in the company's capital structure and financial leverage.
From December 2019 to March 2020, the debt-to-equity ratio was relatively low, indicating a conservative approach to debt financing. However, there was a significant spike in the ratio by September 2020, reaching 1.83, suggesting a substantial increase in debt relative to equity.
Subsequently, there was a sharp decline in the ratio by December 2020, possibly due to debt repayment or increased equity infusion. The ratio remained relatively stable throughout 2021, hovering between 0.80 and 0.91, indicating a more balanced mix of debt and equity in the company's capital structure.
The ratio increased in the first half of 2022, reaching 0.82 by June, and further increased to 1.12 by March 2023. This uptrend continued, with the ratio peaking at 1.36 by March 2024, indicating a higher level of debt relative to equity.
Overall, the trend in the debt-to-equity ratio for DXC Technology Co suggests that the company has utilized debt to finance its operations and investments, with fluctuations possibly influenced by strategic decisions, economic conditions, and market factors. It is essential for investors and stakeholders to closely monitor these changes to assess the company's financial risk and stability.
Peer comparison
Mar 31, 2024