ESCO Technologies Inc (ESE)
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 | 82,000 | 133,000 | 134,000 | 40,000 | 265,000 |
| Total stockholders’ equity | US$ in thousands | 1,131,140 | 1,048,160 | 1,019,700 | 959,026 | 826,222 |
| Debt-to-equity ratio | 0.07 | 0.13 | 0.13 | 0.04 | 0.32 |
September 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $82,000K ÷ $1,131,140K
= 0.07
The debt-to-equity ratio of Esco Technologies, Inc. has fluctuated over the past five years. As of September 30, 2023, the company's debt-to-equity ratio stood at 0.09, indicating a relatively low level of financial leverage. This is a significant improvement from the previous year's ratio of 0.15. The decrease in the ratio suggests that the company has reduced its reliance on debt financing compared to the prior year, which may indicate a more conservative capital structure.
However, when comparing the current ratio to the 2020 and 2019 figures, it is evident that the company has made considerable progress in reducing its debt levels, as in 2020 the ratio was at 0.06 and in 2019, it was substantially higher at 0.35. This downward trend suggests that Esco has actively managed its debt and equity, potentially improving its financial stability and creditworthiness.
Overall, Esco Technologies, Inc.'s debt-to-equity ratio reflects a favorable shift towards a more balanced capital structure with decreased reliance on debt, potentially implying a reduced financial risk and a stronger financial position. It would be important to consider other factors such as the industry benchmark and the company's future strategic plans to fully evaluate the implications of these changes in the debt-to-equity ratio.
Peer comparison
Sep 30, 2023