Edgewell Personal Care Co (EPC)
Debt-to-capital ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,360,700 | 1,391,400 | 1,234,200 | 1,237,900 | 1,097,800 |
| Total stockholders’ equity | US$ in thousands | 1,540,500 | 1,467,100 | 1,590,800 | 1,438,600 | 1,303,500 |
| Debt-to-capital ratio | 0.47 | 0.49 | 0.44 | 0.46 | 0.46 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,360,700K ÷ ($1,360,700K + $1,540,500K)
= 0.47
The debt-to-capital ratio for Edgewell Personal Care Co has fluctuated over the past five years, ranging from 0.44 to 0.49. This ratio measures the proportion of a company's capital that is contributed by debt. A higher ratio indicates a greater reliance on debt financing, while a lower ratio suggests a higher proportion of equity in the capital structure.
In 2023, the company's debt-to-capital ratio stands at 0.47, indicating that approximately 47% of its capital is from debt sources. This represents a slight decrease from the previous year's ratio of 0.49. The decrease could reflect a reduction in the company's reliance on debt financing or an increase in equity contributions to the capital structure.
It is important to consider the trend of the debt-to-capital ratio over time to gain a more comprehensive understanding of the company's financing strategy and financial risk. Additionally, comparing the ratio to industry benchmarks and analyzing the company's ability to service its debt obligations would provide further insights into its financial health and leverage position.
Peer comparison
Sep 30, 2023