Guess? Inc. (GES)
Debt-to-equity ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | 247,363 |
| Total stockholders’ equity | US$ in thousands | 684,940 | 534,113 | 622,658 | 543,663 | 639,714 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.39 |
February 3, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $684,940K
= 0.00
Guess? Inc. has consistently maintained a debt-to-equity ratio of 0.00 for the past four fiscal years, indicating that the company has been entirely financed by equity during this period. However, it is important to note that in the fiscal year ending February 1, 2020, there was a significant increase in the debt-to-equity ratio to 0.39, suggesting that Guess? Inc. took on debt to finance its operations or growth initiatives during that year.
The sudden increase in the debt-to-equity ratio in 2020 could imply a shift in the company's capital structure or a change in its financing strategy. It would be important for stakeholders to delve deeper into the financial statements and accompanying disclosures to understand the reasons behind this change and its implications for the company's financial health and risk profile. Overall, the consistent low debt-to-equity ratio in the preceding years reflects Guess? Inc.'s historically conservative approach to leverage and capital management.