Greenbrier Companies Inc (GBX)
Debt-to-capital ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 906,600 | 867,500 | 492,319 | 498,858 | 521,544 |
| Total stockholders’ equity | US$ in thousands | 1,254,600 | 1,276,900 | 1,307,700 | 1,293,040 | 1,276,730 |
| Debt-to-capital ratio | 0.42 | 0.40 | 0.27 | 0.28 | 0.29 |
August 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $906,600K ÷ ($906,600K + $1,254,600K)
= 0.42
The debt-to-capital ratio of Greenbrier Cos., Inc. has shown a consistent upward trend over the past five years, indicating an increasing reliance on debt as a source of capital. In Aug 31, 2019, the ratio stood at 0.40, and it has since increased to 0.56 by Aug 31, 2023. This suggests that the proportion of the company's capital funded by debt has grown. While this may indicate increased financial leverage, it also implies higher financial risk as a greater portion of the capital structure is reliant on debt financing. It would be important for stakeholders to monitor the company's ability to manage and service this increasing debt load to ensure long-term financial stability.
Peer comparison
Aug 31, 2023