ESCO Technologies Inc (ESE)
Debt-to-equity 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-equity ratio | 0.08 | 0.07 | 0.13 | 0.13 | 0.04 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $102,000K ÷ $1,237,350K
= 0.08
ESCO Technologies Inc's debt-to-equity ratio has exhibited fluctuations over the past five years, with a low of 0.04 in 2020 and a high of 0.13 in both 2022 and 2021. In 2023 and 2024, the ratio decreased to 0.07 and 0.08, respectively.
The decreasing trend in the debt-to-equity ratio from 2021 to 2024 could be an indication of the company's efforts to reduce its reliance on debt financing in favor of equity financing. This may be viewed positively by investors and creditors as a lower debt-to-equity ratio suggests a lower financial risk and greater financial stability.
However, it is important to note that a very low debt-to-equity ratio, such as the 0.04 ratio in 2020, could also indicate underutilization of debt to leverage growth opportunities. Overall, a moderate and balanced debt-to-equity ratio can be a sign of a healthy capital structure for ESCO Technologies Inc.
Peer comparison
Sep 30, 2024