ESCO Technologies Inc (ESE)
Debt-to-capital ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 102,000 | 82,000 | 133,000 | 134,000 | 40,000 |
| Total stockholders’ equity | US$ in thousands | 1,237,350 | 1,131,140 | 1,048,160 | 1,019,700 | 959,026 |
| Debt-to-capital ratio | 0.08 | 0.07 | 0.11 | 0.12 | 0.04 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $102,000K ÷ ($102,000K + $1,237,350K)
= 0.08
The debt-to-capital ratio of ESCO Technologies Inc has fluctuated over the past five years, ranging from 0.04 in 2020 to 0.12 in 2021. In 2024, the ratio stood at 0.08, showing a slight increase from the previous year's 0.07. This indicates that the company's level of debt in relation to its total capital has remained relatively stable in recent years, with a tendency towards a conservative capital structure. It is important to note that a lower debt-to-capital ratio suggests lower financial risk and greater financial stability, while a higher ratio may indicate higher leverage and potential financial risk. As such, ESCO Technologies Inc appears to maintain a prudent balance between debt and equity in its capital structure.
Peer comparison
Sep 30, 2024