ESCO Technologies Inc (ESE)
Debt-to-capital ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 102,000 | 153,000 | 171,000 | 152,000 | 82,000 | 128,000 | 141,000 | 112,000 | 133,000 | 181,000 | 176,000 | 178,000 | 134,000 | 28,000 | 2,000 | 34,000 | 40,000 | 130,000 | 130,000 | 130,000 |
| Total stockholders’ equity | US$ in thousands | 1,237,350 | 1,193,690 | 1,166,410 | 1,154,090 | 1,131,140 | 1,107,040 | 1,080,800 | 1,066,400 | 1,048,160 | 1,029,880 | 1,021,170 | 1,015,280 | 1,019,700 | 1,004,850 | 990,660 | 976,162 | 959,026 | 943,457 | 926,207 | 915,491 |
| Debt-to-capital ratio | 0.08 | 0.11 | 0.13 | 0.12 | 0.07 | 0.10 | 0.12 | 0.10 | 0.11 | 0.15 | 0.15 | 0.15 | 0.12 | 0.03 | 0.00 | 0.03 | 0.04 | 0.12 | 0.12 | 0.12 |
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 exhibited some fluctuation over the past few quarters. The ratio ranged from 0.00 to 0.15 during the period from December 2019 to September 2024. Overall, the company has maintained a relatively conservative capital structure with debt levels varying between 3% to 15% of the total capital during this period.
In recent quarters, the debt-to-capital ratio trended upwards, reaching 0.13 in March 2024 before moderating slightly to 0.11 in June 2024. This increase in the ratio indicates a higher proportion of debt in the company's capital structure compared to previous periods, suggesting a potential shift towards more leverage.
It is noteworthy that ESCO Technologies Inc's debt-to-capital ratio was particularly low in the first half of 2021, ranging from 0.00 to 0.03, indicating a very low debt exposure during that period. However, the ratio increased significantly in subsequent quarters, reflecting a strategic decision to potentially raise capital through debt financing for growth or investment opportunities.
Overall, the trend in ESCO Technologies Inc's debt-to-capital ratio suggests a dynamic approach to capital structure management, with periodic adjustments to leverage levels based on the company's strategic objectives and market conditions. Investors and stakeholders may want to monitor future changes in the debt-to-capital ratio to assess the company's financial risk and capital allocation strategies.
Peer comparison
Sep 30, 2024