Ethan Allen Interiors Inc (ETD)
Debt-to-capital ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | 50,000 |
| Total stockholders’ equity | US$ in thousands | 482,980 | 471,028 | 407,349 | 351,443 | 328,065 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.13 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $482,980K)
= 0.00
The debt-to-capital ratio of Ethan Allen Interiors Inc has remained consistently at 0.00 for the past four years, indicating that the company has not used any debt to finance its operations in relation to its capital structure during this period. However, it is worth noting that in the fiscal year ending June 30, 2020, the debt-to-capital ratio was 0.13, implying that the company had started to introduce some debt into its capital structure at that time. This subsequent decline to 0.00 in the following years suggests a shift towards a more conservative financing approach with lower reliance on debt. It may indicate a strategic decision to reduce financial risk and strengthen the company's financial position by relying more on equity financing rather than debt. This trend towards a debt-free capital structure could potentially enhance the company's ability to weather economic downturns and effectively manage its financial obligations without undue leverage.
Peer comparison
Jun 30, 2024