Dycom Industries Inc (DY)
Debt-to-capital ratio
| Jan 27, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Jan 25, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 791,415 | 807,367 | 823,251 | 501,562 | 844,401 |
| Total stockholders’ equity | US$ in thousands | 1,054,660 | 868,755 | 758,544 | 811,308 | 868,604 |
| Debt-to-capital ratio | 0.43 | 0.48 | 0.52 | 0.38 | 0.49 |
January 27, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $791,415K ÷ ($791,415K + $1,054,660K)
= 0.43
Dycom Industries, Inc.'s debt-to-capital ratio has varied over the past five years, ranging from 0.42 to 0.53. The ratio indicates the proportion of the company's total debt in relation to its total capital, which includes both debt and equity. A higher debt-to-capital ratio suggests that the company relies more on debt financing to fund its operations and growth.
In this case, Dycom Industries' debt-to-capital ratio has shown some fluctuation, with a peak in 2022 at 0.53 and a low point in 2021 at 0.42. The decrease in the ratio from 2022 to 2023 indicates a potential reduction in debt relative to total capital, which could be a positive signal of improved financial health or a shift towards a more balanced capital structure.
It is important for investors and analysts to monitor the debt-to-capital ratio over time to assess the company's financial leverage and risk exposure. A stable or decreasing trend in the ratio could indicate prudent financial management, while a significant increase may raise concerns about the company's ability to meet its debt obligations and long-term sustainability.
Peer comparison
Jan 27, 2024