Energizer Holdings Inc (ENR)
Debt-to-capital ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,193,000 | 3,332,100 | 3,499,400 | 3,333,400 | 3,306,900 |
| Total stockholders’ equity | US$ in thousands | 135,800 | 210,700 | 130,600 | 355,700 | 309,100 |
| Debt-to-capital ratio | 0.96 | 0.94 | 0.96 | 0.90 | 0.91 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,193,000K ÷ ($3,193,000K + $135,800K)
= 0.96
The debt-to-capital ratio for Energizer Holdings Inc has been fluctuating over the past five years, ranging from 0.90 in 2021 to 0.96 in 2024 and 2022. This ratio indicates the proportion of the company's capital structure that is financed by debt, with the remaining portion financed by equity.
A higher debt-to-capital ratio suggests a higher level of financial risk as the company is relying more heavily on debt to finance its operations. On the other hand, a lower ratio indicates a more conservative financial structure with a greater emphasis on equity financing.
Energizer Holdings Inc's rising debt-to-capital ratio in 2024 compared to the previous year may signal an increasing reliance on debt to fund its operations or expansion. It would be important to further analyze the company's overall financial health, profitability, and cash flow to assess the implications of this trend on its sustainability and risk profile.
Peer comparison
Sep 30, 2024