Energizer Holdings Inc (ENR)
Debt-to-equity ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,332,100 | 3,499,400 | 3,333,400 | 3,306,900 | 3,461,600 |
| Total stockholders’ equity | US$ in thousands | 210,700 | 130,600 | 355,700 | 309,100 | 543,800 |
| Debt-to-equity ratio | 15.81 | 26.79 | 9.37 | 10.70 | 6.37 |
September 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,332,100K ÷ $210,700K
= 15.81
The debt-to-equity ratio measures the proportion of a company's financing that comes from debt compared to equity. A higher debt-to-equity ratio suggests a greater reliance on debt financing, which can indicate higher financial risk, while a lower ratio suggests a stronger equity position and less financial risk.
Looking at Energizer Holdings Inc's debt-to-equity ratio over the past five years, we can see fluctuations in the ratio:
- In 2023, the debt-to-equity ratio stands at 15.91, indicating a decrease from the previous year's ratio of 26.94. This reduction suggests a lower reliance on debt financing relative to equity compared to the prior year. It's a positive sign, as it may indicate improved financial stability.
- In 2022, the debt-to-equity ratio had increased sharply to 26.94 from 9.71 in 2021. This large increase implies a significant rise in debt relative to equity. A high ratio may suggest higher financial leverage and associated risks, such as increased interest expenses and potential difficulties in meeting debt obligations.
- In 2021, the debt-to-equity ratio was 9.71. This represented a decrease from 13.44 in 2020, indicating a lower reliance on debt financing compared to the previous year. A lower ratio may suggest a more conservative capital structure and reduced financial risk.
- In 2020, the ratio was 13.44, showing an increase from 6.43 in 2019. This rise suggests a higher proportion of debt financing relative to equity. While this can indicate increased financial leverage, it may also imply potential risks associated with higher debt levels.
- In 2019, the ratio stood at 6.43, reflecting a moderate increase from the prior year. This indicates a higher reliance on debt financing compared to equity. However, the ratio is still relatively moderate, suggesting a balanced capital structure.
In summary, the trends in Energizer Holdings Inc's debt-to-equity ratio indicate fluctuations in the company's capital structure and financing mix over the past five years. The recent decrease in the ratio from 2022 to 2023 may be viewed as a positive sign, potentially reflecting a reduced reliance on debt financing and improved financial stability. However, it's essential to consider the broader financial and operational context when evaluating the implications of these changes in the debt-to-equity ratio.
Peer comparison
Sep 30, 2023