Enerpac Tool Group Corp (EPAC)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 326,620 | 318,611 | 412,198 | 359,226 | 301,179 |
| Debt-to-capital ratio | 0.39 | 0.39 | 0.30 | 0.42 | 0.60 |
August 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $210,337K ÷ ($210,337K + $326,620K)
= 0.39
The debt-to-capital ratio of Enerpac Tool Group Corp has fluctuated over the past five years. As of August 31, 2023, the ratio stands at 0.40, a slight increase from the previous year's 0.39. In 2021, there was a notable decrease from 0.42 to 0.30, indicating improved capital structure and reduced reliance on debt. However, in 2019, the ratio was considerably higher at 0.60, suggesting a higher level of debt relative to capital.
The trend in the debt-to-capital ratio reflects Enerpac Tool Group Corp's changing approach to financing its operations. A lower ratio signifies a greater proportion of capital relative to debt, which may indicate a stronger financial position and reduced financial risk. Conversely, a higher ratio suggests higher financial leverage and potential vulnerability to economic downturns or interest rate fluctuations.
Overall, the trend in Enerpac Tool Group Corp's debt-to-capital ratio signals a mix of strategies in capital structure management over the past five years, with varying impacts on the company's financial risk and stability.
Peer comparison
Aug 31, 2023