Greenbrier Companies Inc (GBX)
Debt-to-equity 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-equity ratio | 0.72 | 0.68 | 0.38 | 0.39 | 0.41 |
August 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $906,600K ÷ $1,254,600K
= 0.72
The debt-to-equity ratio of Greenbrier Cos., Inc. has shown an increasing trend over the past five years, from 0.67 in 2019 to 1.28 in 2023. This indicates that the company has been relying more on debt to finance its operations relative to its equity. While a higher debt-to-equity ratio can enhance returns on equity, it also increases financial risk as the company has a greater obligation to meet its debt payments. The rising trend in the ratio suggests that the company's financial leverage has been increasing, which could potentially raise concerns about its ability to manage debt effectively. It would be prudent for stakeholders to closely monitor the company's debt levels and its capacity to generate sufficient earnings to service its debt obligations.
Peer comparison
Aug 31, 2023