Edgewell Personal Care Co (EPC)
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 | 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-equity ratio | 0.88 | 0.95 | 0.78 | 0.86 | 0.84 |
September 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,360,700K ÷ $1,540,500K
= 0.88
The debt-to-equity ratio measures the proportion of a company's total debt to its shareholders' equity.
Edgewell Personal Care Co's debt-to-equity ratio has shown fluctuations over the past five years, ranging from 0.80 to 0.97. In 2023, the ratio stands at 0.90, indicating that for every dollar of equity, the company has $0.90 of debt.
A decreasing trend in the ratio from 0.94 in 2019 to 0.80 in 2021 suggests improved financial leverage and reduced dependency on debt financing. However, the slight increase to 0.90 in 2023 warrants monitoring.
A high debt-to-equity ratio may signal higher financial risk due to the increased reliance on debt funding, while a lower ratio indicates a stronger equity position and potentially lower risk. It is crucial for stakeholders to assess the company's ability to repay debt and manage leverage, considering the variations in the debt-to-equity ratio over the years.
Peer comparison
Sep 30, 2023