Enerpac Tool Group Corp (EPAC)
Debt-to-assets ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 210,337 | 200,000 | 175,000 | 255,000 | 452,945 |
| Total assets | US$ in thousands | 762,597 | 757,312 | 820,247 | 824,294 | 1,124,270 |
| Debt-to-assets ratio | 0.28 | 0.26 | 0.21 | 0.31 | 0.40 |
August 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $210,337K ÷ $762,597K
= 0.28
The debt-to-assets ratio, which measures the proportion of a company's assets financed by debt, presents an interesting trend in the case of Enerpac Tool Group Corp. Over the past five years, the company's debt-to-assets ratio has fluctuated, varying from 0.21 in 2021 to 0.41 in 2019.
In 2023, the debt-to-assets ratio stands at 0.28, which indicates that 28% of Enerpac Tool Group Corp's assets are financed by debt. This represents a slight increase from the previous year's ratio of 0.27.
The gradual increase in the debt-to-assets ratio suggests that the company might be relying more on debt financing to support its asset base. While a moderate level of debt can be considered normal and even beneficial for a company, it is crucial to monitor the trend closely to ensure that the company maintains a healthy balance between debt and assets.
Further analysis of the company's financing and investment strategies, as well as its ability to service its debt obligations, would provide a more comprehensive understanding of the implications of the debt-to-assets ratio trend.
Peer comparison
Aug 31, 2023