Greenbrier Companies Inc (GBX)
Debt-to-equity ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 906,600 | 867,500 | 492,319 | 498,858 |
| Total stockholders’ equity | US$ in thousands | 1,376,100 | 1,254,600 | 1,276,900 | 1,307,700 | 1,293,040 |
| Debt-to-equity ratio | 0.00 | 0.72 | 0.68 | 0.38 | 0.39 |
August 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,376,100K
= 0.00
The debt-to-equity ratio of Greenbrier Companies Inc has exhibited fluctuations over the past five years. In 2024, the ratio stands at 0.00, indicating that the company has no debt and is solely financed by equity. This represents a significant improvement from the previous year, where the ratio was 0.72, suggesting a high level of debt relative to equity.
The trend over the five-year period shows that the company has been actively managing its debt levels, as seen in the decreasing ratios from 2021 to 2023. In 2021, the ratio was 0.38, indicating a conservative debt position compared to equity. However, the ratio slightly increased in 2022 to 0.68 before declining again in 2023 to 0.72. The substantial decrease to 0.00 in 2024 may signify strategic deleveraging or a shift in the company's capital structure.
Overall, the debt-to-equity ratio provides insight into Greenbrier Companies Inc's capital structure and its ability to meet financial obligations. A lower ratio generally implies lower financial risk and better solvency, while a higher ratio may indicate higher leverage and associated risks. The recent drop to 0.00 suggests a significant change in the company's debt management strategy, potentially aimed at reducing financial risk and improving long-term stability.
Peer comparison
Aug 31, 2024